On 25 October 2023, the FCA published a warning regarding common issues with crypto marketing, after a new regime came into effect which brought such promotions under its remit.
Since 8 October 2023, when the FCA began supervising firms against the new regime, it has identified 3 common issues with crypto asset financial promotions including:
- Promotions making claims about the ‘safety’, ‘security’ or ease of using crypto asset services without highlighting the risk involved.
- Risk warnings not being visible enough due to small fonts, hard to read colouring or non-prominent positioning.
- Firms are failing to provide customers with adequate information on the risks associated to specific products being promoted.
The FCA reminds authorised firms approving the financial promotions of crypto asset firms that it expects them to take their regulatory obligations seriously. Where this is not happening, the FCA will take action and has already placed restrictions on an authorised firm to restrict it from approving crypto asset financial promotions. Furthermore, the FCA is also continuing to identify and act against firms that are illegally promoting crypto assets to UK consumers. Since the regime went live, the FCA has issued 221 alerts. This list will be continually updated as the FCA identifies firms which may be illegally communicating crypto asset promotions and are failing to engage with it constructively.