On 7 June 2023, there was published on the legislation.gov.uk website The Financial Services and Markets Act 2000 (Financial Promotion) (Amendment) Order 2023.

Together with FCA rules this Order will provide for the regulation of in-scope cryptoasset financial promotions.

The Order:

  • Amends the Financial Services and Markets Act (Financial Promotions) Order 2005 (FPO) by creating a new controlled investment (defined as a “qualifying cryptoasset”), as well as amending relevant controlled activities to incorporate reference to qualifying cryptoassets.
  • Applies and modifies certain existing exemptions in the FPO to qualifying cryptoassets.
  • Creates a temporary, limited exemption to the financial promotion restriction (imposed by section 21(1) of the Financial Services and Markets Act 2000), for cryptoasset businesses (which are not authorised persons) on the FCA’s anti-money laundering register.
  • Provides for an implementation period of four months from the day after it is made before it comes into force. This period is intended to allow industry time to understand how the regime will be practically implemented, with the aim of ensuring compliance across the industry.