The FCA has published its Policy Statement (PS23/6) on financial promotion rules for cryptoassets. This follows the publication of legislation on 7 June 2023 to bring cryptoassets into the FCA’s remit.
Under the Rules, crypto firms will be required to ensure that people have the appropriate knowledge and experience to invest in cryptoassets. The FCA has proposed a package of measures which include:
- those marketing cryptoassets to UK consumers will need to introduce a cooling-off period for first time investors;
- those promoting cryptoassets must put in place clear risk warnings and ensure adverts are clear, fair and not misleading;
- bonuses received for ‘refer a friend’ campaigns will be banned; and
- robust action for firms breaching the rules, including requesting take downs of websites in breach, placing firms on the FCA’s warning list, and regulatory enforcement actions.
Read our latest Client Alert for further details:
Further information from the FCA here: