It has been just revealed that an important UK financial regulator is bringing crypto guidance for firms. Check out the latest reports below.
UK financial regulator addresses crypto
The Financial Conduct Authority (FCA) of the United Kingdom has recently released new guidelines for cryptocurrency firms on how to properly market digital assets.
In a press release, the regulatory agency has disclosed its updated regulations for crypto companies on what information they must provide when advertising crypto assets.
The FCA states that due to a change in legislation, promotions of crypto assets targeted towards UK consumers now fall under its jurisdiction. The FCA has introduced these rules to offer investors a better understanding of their investments and the associated risks.
The FCA aims to minimize consumer harm by disclosing risks of virtual currency trading, promoting long-term growth for the UK economy.
“A central requirement of our financial promotion rules is that financial promotions must be fair, clear, and not misleading…
[The FCA] continues to focus on our primary objective of reducing consumer harm and clarifying our expectations of firms, helping to support better compliance with the relevant rules and deliver better overall consumer outcomes.These actions aim to support long-term economic growth in the UK by reducing the instances of loss of trust in financial services caused by customers not fully understanding the risk when purchasing crypto assets. Clearer and fairer promotions will enable consumers to be better informed to make appropriate decisions aligned with their needs and risk profile.”
Lucy Castledine, Director of Consumer Investments at the FCA, states that the new rules for firms marketing cryptocurrency to UK consumers are in line with the existing rules for other high-risk investments.
The FCA has worked closely with the industry to design this guidance to specifically support cryptocurrency firms in complying with the regulations.
The FCA values the input of the industry and is continuously seeking feedback to ensure that the rules, their implementation, and the support offered are appropriate.
The FCA is grateful for all the input received during the consultation period for this guidance.
