FCA update on crypto marketing

On 25 October 2023, the FCA provided an update on the new crypto financial promotion regime, which has applied since 8 October 2023.

The FCA has drawn attention to some of the things it has seen with crypto financial promotions since the regime went live:

• claims relating to ‘safety’, ‘security’ or ease of using cryptoasset services without the risk being highlighted
• risk warnings not being sufficiently visible because of small fonts, difficult-to-read colouring or not being positioned prominently 
• firms are failing to provide customers with adequate information on the risks associated with specific products being promoted.

While the FCA has emphasised that where a firm has engaged with the FCA in good faith towards achieving compliance it is taking a proportionate approach to implementation, it has reiterated that it will take appropriate regulatory action where firms are illegally promoting cryptoassets to UK consumers.  

Authorised firms that approve financial promotions are reminded to take their regulatory obligations seriously and of the consequences of not doing so. The FCA is engaging with social media platforms, app stores, search engines and domain name registrars to remove or block illegal promotions and is also working with payments firms to reduce the exposure of UK consumers to illegal promotions.

For more background on the new crypto financial promotion regime, please see the Fintech and Digital Assets section of the October 2023 edition of Taylor Wessing's Financial Services Matters.