The UK Financial Conduct Authority (FCA) has issued new rules for crypto promotions. The rules are said to align with other financial services offerings.
CryptoUK, an association representing the UK’s digital asset industry, has issued a statement on the marketing rules.
Su Carpenter, Director of Operations at CryptoUK, said they encourage appropriate consumer protections and high standards for communications so consumers are aware of the risks of investing in crypto, calling this critical to the success of the industry.
“However, we do ask that any regulation also empowers consumers to invest and transact in cryptoassets safely and confidently, whilst keeping in mind that there are multiple additional use cases for this technology outside of just investments. These would also be subject to any restrictions on providers promoting their technology and services,” said Carpenter. “The requirement that all approvers of financial promotions have an understanding of cryptoassets and have permission to act as an approver also has the potential to introduce an overly restrictive regime, based on the incredibly small number of organisations which would meet that criteria for approver status.”
Carpenter expressed concerns that the marketing proposal may create restrictive barriers, creating an “unbalanced environment.”
“There is a risk that this solution will both unfairly concentrate market power for those firms which are already authorised and potentially encourage unauthorised firms to operate from outside of the UK, creating a competitive disadvantage for UK-based organisations and also potentially undermining consumer safeguards,” Carpenter stated, adding that they support the “cooling off period” but question its proposed length – which is not aligned with other jurisdictions.
“[We] would welcome evidence-based findings” on this proposal, said Carpenter.
“We want to encourage a competitive and equal environment for the cryptoasset industry to continue to grow and innovate safely, whilst operating within appropriate safeguards and offering education and information to all consumers and will be working with our members to respond to the consultation with recommendations to help ensure this outcome.”
