David Edwards
The UK’s Financial Conduct Authority (FCA) has taken decisive action to oversee the crypto industry by issuing 146 alerts on the first day of enforcing new promotion regulations. This move marks a key step in reining in the aggressive marketing of crypto investments.
The FCA has released a detailed handbook offering guidelines for crypto firms on how to responsibly promote digital assets.
With these new UK crypto promotion rules now in full force, the 32-page guide aims to ensure that promotional activities are conducted in a manner that is transparent, straightforward, and non-deceptive. It also leaves room for future adjustments, acknowledging the ever-changing landscape of the cryptocurrency market.
Despite calls from a minister for a more relaxed approach, as reported by the Financial Times, the FCA is taking a firm stance. The regulator notes that almost 5 million UK residents owned crypto assets by August 2022. The introduction of these new regulations is intended to safeguard these investors from potentially impulsive and regrettable crypto investments.
James Daley, managing director of Fairer Finance, commended the FCA’s actions, recognizing this as a significant moment for the implementation of “proper regulation.” He emphasized that with regulated marketing, the FCA can now issue warnings and curb misinformation.
Laith Khalaf, head of investment analysis at AJ Bell, agreed with Daley, acknowledging the FCA’s progress in regulating the cryptocurrency sector. Khalaf cautioned that a considerable number of investors may have overly invested in cryptocurrencies based on unrealistic expectations. He expressed hope that enhanced regulation will prove beneficial for these individuals.
