The UK Financial Conduct Authority (FCA) published the new rules applicable to all firms marketing cryptoassets to UK consumers. In particular, these rules are set to bring cryptoassets into the financial solicitation/promotion regime as of 8 October 2023.
The Financial Conduct Authority (FCA) reported a growing and worrying mismatch between consumers’ investment decisions and their level of risk tolerance and therefore decided to categorise cryptoassets under “Restricted Mass Market Investments”, in order to ensure an adequate level of protection for consumers, without, however, stifling a market that is still developing.
The new rules are expected to take effect on 8 October 2023 and will bring cryptoassets within the scope of the financial solicitation/promotion regime. The definition of financial promotion needs to be interpreted extensively, as it covers several different types of communications made by a company, including those published on websites, apps or made via social media and online advertising. Furthermore, any promotional activity originating outside of the United Kingdom will also be covered by the promotional rules if it has an effect on the UK consumers, even when such activity is not exclusively addressed to them.
There will be four routes to promote crypto assets to UK consumers: Read more
