On 26 November 2024, the Financial Conduct Authority (FCA) published a new webpage on cryptoasset financial promotions and fiat-to-crypto on/off ramp services, which reminds firms that they should carefully consider the risks of partnering with unregistered cryptoasset firms that may be illegally promoting to UK consumers.

The FCA notes that, following engagement with regulated and registered firms, it is encouraged by the steps many firms are taking to ensure they meet their own obligations when providing services to unregistered cryptoasset firms. It sets out on the webpage:

  • The harms that are likely to arise when regulated/registered firms provide services to unregistered cryptoasset firms who appear to be illegally promoting.
  • The risks regulated/registered firms could be exposing themselves to by providing services to unregistered cryptoasset firms who appear to be illegally promoting.
  • Examples of positive steps taken by regulated/registered firms to address the FCA’s concerns.

The following types of firm are asked to consider the matters set out on the page and be prepared to discuss them with the FCA if required:

  • Cryptoasset firms registered under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 providing fiat to crypto and crypto to fiat (on/off ramp) services to unregistered cryptoasset firms.
  • Payment services and electronic money firms authorised or registered under the Payment Services Regulations 2017 or Electronic Money Regulations 2011 providing on/off ramp services or otherwise providing payment services to unregistered cryptoasset firms.
  • Firms authorised under the Financial Services and Markets Act 2000, such as banks, who may be providing services to unregistered cryptoasset firms.