The FCA has warned firms about three common issues with their crypto marketing, namely:
- promotions making claims about the safety, security or ease of using cryptoasset services without highlighting the risk involved;
- risk warnings not being visible enough due to small fonts, hard-to-read colouring or non-prominent positioning; and
- failing to provide customers with adequate information on the risks associated to the specific products being promoted.
The FCA continues to take action against firms that are illegally promoting cryptoassets to UK consumers. There has been an increase in the alerts issued against firms, from 146 on 9 October 2023 to 221 as of 25 October 2023. This shows that the FCA is pushing ahead with its robust approach to enforcing the new regime despite calls for regulatory forbearance.
In its latest warning the FCA states that it is working with businesses – including social media platforms, app stores, search engines and domain name registrars – to remove or block illegal promotions. It is also working with payments firms to limit UK consumer exposure to firms issuing illegal promotions.
The FCA’s restriction on cryptoasset financial promotions took effect on 8 October 2023. Find out more about the new regime on our crypto promotions hub.