Amid new marketing rules for crypto firms, the U.K.’s Financial Conduct Authority (FCA) is issuing guidance to help firms comply with its new regime.
Following a consultation, the FCA issued new guidance to facilitate compliance with the new rules — effective last month — which aim to ensure investors understand what they’re buying and that the risks involved are adequately disclosed.
“While the new rules for firms marketing crypto to U.K. consumers are aligned with the existing rules for other high-risk investments, we’ve engaged extensively with industry and designed this guidance to specifically support crypto firms complying,” said Lucy Castledine, director of consumer investments with the FCA, in a release.
Last week the regulator reported it found several common compliance issues since the new regime took effect on Oct. 8, including firms failing to provide investors with adequate risk information, risk warnings that are too hard to read or find, and promotions touting the safety of the firm without highlighting the risks.
At the time, the FCA said it already issued 221 warnings about non-compliant firms, and that it was taking action against firms that are offside, including placing restrictions on one registered firm, limiting its ability to approve crypto promotions.
The regulator also said it’s working with social media platforms, app stores, search engines and domain name registrars to “remove or block illegal promotions,” and that it’s working with payments firms to limit investors’ exposure to these kinds of promotions.