Cryptocurrency promoters have breached the UK's new cryptocurrency marketing rules at least 221 times since they came into force in early October, the country's financial regulator says.
On October 25 statementThe UK Financial Conduct Authority (FCA) said that since the cryptocurrency promotion rules came into force on October 8, companies still do not provide sufficiently visible risk warnings, provide adequate information about the risks and make claims about security or ease. of using cryptocurrencies without highlighting the risks involved.
Latest FCA warning tally comes after saying on October 9, it issued 146 alerts about violations of the new rules in the 24 hours after the new regime came into force.
Discover the 3 common problems we have identified with #cryptoactive financial promotions.
Consumers should consult the FCA's Warning List before making any investment in #cryptohttps://t.co/CKn4cFxb11
โ Financial Conduct Authority (@TheFCA) October 25, 2023
While many of the FCA's actions related to cryptocurrencies alerts Although they appear to be illegitimate schemes offering high-yield returns on cryptocurrency investments, the FCA has also taken action against seemingly legitimate companies.
An October 10 statement said it had imposed restrictions on Reconstruction of society โ the company regulated by the FCA Binance partnered with approve your marketing and communications to comply with the new FCA rules. Binance later incorporation stopped new UK users.
โWe hope that authorized firms approving financial promotions of cryptoasset companies take their regulatory obligations seriously,โ the FCA statement said. "When this does not happen, we will take action."
It added that it is working with social media platforms, app stores, search engines, domain name registrars and payment providers to remove, block and stop the flow of funds towards prohibited promotions.
Related: Largest DeFi Protocol Solana Reportedly Leaving UK Market, Citing FCA Rule
Low the new rulesCryptocurrency-related advertisements can only be promoted or endorsed by firms regulated or authorized by the FCA and apply to all firms, even those without a UK presence.
Promotions must have "prominent risk warnings" and not encourage investment in cryptocurrencies. Typical promotions from foreign markets such as referral bonuses and memes are banned and restricted in the UK
Transak Chief Compliance Officer, James Young told Cointelegraph The FCA regime is โvery difficultโ for firms to implement, but he believes consumer protection will increase adoption โon an exponential scaleโ.
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