The Financial Conduct Authority (FCA) has warned firms that are marketing crypto-assets to UK customers to comply with the incoming financial promotions regime, or risk criminal charges.
Effective from 8 October, the order also applies to overseas firms that market their products to UK customers. Failure to adhere to the rules may result in firms committing a criminal offence.
To ensure people make an informed decision, four legal methods of promote crypto-assets have been outlined: authorized persons communicating the promotion, unauthorized persons communicating the promotion (but an authorized person approving it), registered crypto asset businesses communicating the promotion, and promotions that meet the conditions of an exemption in the Financial Promotion Order.
Those not meeting one of these methods will result in a breach of FSMA, punishable by up to 2 years imprisonment, an unlimited fine, or both.
For those wishing to pursue a registration with the FCA, they must expect a lengthy application process, registration fee, and a wait time of up to three months.
