UK Regulator Warns About “Common Issues” in Crypto Marketing

The UK financial regulator (FCA) has issued a warning over “common issues” in crypto asset promotions.

Man looking at crypto memes in a hightech futuristic office.
Created by Gabor Kovacs from DailyCoin
  • The FCA has underscored its authority over crypto promotions in the UK.
  • The regulator raised “common issues” observed since a new marketing regime went into effect.
  • The financial watchdog shared an updated “alert list” for non-compliant entities.

The UK’s financial watchdog has sounded a warning over what the regulator terms “common issues” in crypto promotion following a new digital assets marketing regime that took effect on October 8.

On October 25, the FCA released an official statement reiterating that the October 8 legislation amendment brought crypto assets promotions and its remit and noted concerns about certain firms failing to give consumers the right information and risk warnings.

Common Issues in Crypto Assets Financial Promotions

Per the FCA’s statement, since the new marketing regime was promulgated, the regulator has observed and identified three common issues with crypto asset financial promotions.

The regulator complained about firms that fail to highlight sufficient risk warnings associated with the crypto products they promote, adding that some disclaimers weren’t visible enough due to non-prominent positioning of the message, small fonts, or hard-to-read coloring.

The FCA also raised concerns about dubious claims on the “safety” of using crypto assets without specifying the perils involved in such activity, warning that such deliberate misrepresentations could result in severe consequences.

“We expect authorized firms approving the financial promotions of cryptoasset firms to take their regulatory obligations seriously. Where this is not happening, we will take action and have already placed restrictions on an authorized firm to restrict it from approving cryptoasset financial promotions,” the statement read.

Notably, the regulator averred that the FCA is working with other stakeholders to limit UK consumer exposure to crypto firms issuing illegal promotional statements.

Updated Warning List

In the statement, the FCA confirmed that it was actively engaging several businesses, including app stores, domain name registrars, and social media platforms, to remove or block illegal crypto promotions.

Specifically, the regulator urged users to check its updated warning list for non-compliant firms before making any crypto investment. Since the regime took effect, the number of firms on the alert list has grown to 221.

Read how the FCA resisted political pressure to open up the UK market to crypto:
FCA Resisted Political Push to Open UK Crypto Market Access

Stay updated on why Solana’s Marinade Finance restricted access to the UK market:
Solana’s Marinade Finance Restricts Access to UK Users

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Brian Danga

Brian Danga, a Kenyan crypto reporter, is dedicated to delivering breaking news and updates from the cryptocurrency world. With a background as a Web3 writer and project manager, he recognizes the importance of unbiased reporting. Holding an LLB degree from the University of Nairobi, Brian's analytical skills contribute to his accurate news reporting. His personal interests include cooking, watching documentaries, reading, and engaging in intellectual discussions.