The Financial Conduct Authority (FCA) of the United Kingdom is releasing new guidelines for crypto firms on how to properly market digital assets.
In a new press release, the regulatory agency unveils its updated rules for crypto firms on what information they must provide when marketing crypto assets.
“Following a change in legislation, crypto assets promotions targeting UK consumers now fall within our remit. We have introduced rules that are designed to give people a better understanding of what they are investing in, and the risks involved.”
The FCA says that the goal of the new regulations is to reduce consumer harm by fully disclosing to them the risks associated with trading virtual currencies, which in turn should support long-term growth for the UK economy.
“A central requirement of our financial promotion rules is that financial promotions must be fair, clear, and not misleading…
[The FCA] continues to focus on our primary objective of reducing consumer harm and clarifying our expectations of firms, helping to support better compliance with the relevant rules and deliver better overall consumer outcomes.
These actions aim to support long-term economic growth in the UK by reducing the instances of loss of trust in financial services caused by customers not fully understanding the risk when purchasing crypto assets. Clearer and fairer promotions will enable consumers to be better informed to make appropriate decisions aligned with their needs and risk profile.”
As stated by Lucy Castledine, Director of Consumer Investments at the FCA,
“While the new rules for firms marketing crypto to UK consumers are aligned with the existing rules for other high-risk investments, we’ve engaged extensively with the industry and designed this Guidance to specifically support crypto firms complying.
We continuously seek the industry’s input to get rules, their implementation, and the support we offer right. This Guidance is no exception and we’re grateful for all the input we received during the consultation period.”
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