FCA warns foreign crypto firms about upcoming promotion rules

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FCA warns foreign crypto firms about upcoming promotion rules

Some foreign crypto firms have responded poorly to the U.K. Financial Conduct Authority's attempts to engage them about its upcoming promotions rules for the sector, officials at the Financial Conduct Authority said Monday.

The promotion rules require crypto firms to have appropriate warnings on websites and implement a 24-hour waiting period for new investors to confirm they want to enter into a contract with companies on Oct. 8. The regulator has also given firms the option to apply for a three-month extension to comply with the rules.

While the FCA has tried to engage crypto firms serving U.K. clients about the promotions regime, Castledine said, ''concerned about a lack of engagement from some unregulated overseas firms''.

''T comment on specific firms but what we can say is that, of course, where firms are making decisions to actually get to the standards we want to see, that's really positive,' said Matthew Long, a vice president of payments and digital assets at the FCA.

We will issue warnings against those specific firms when firms don't comply. We also have the ability to issue takedown requests... and we've been working with the other big online tech platforms to make sure that illegal promotions don't actually appear in the first place, Castledine said.

The regulatory authority will also have powers against overseas companies serving U.K. clients without registering with the FCA, Castledine said, but how they will handle them will vary case by case. The agency publishes information on non-compliance firms to global watchdogs like the International Organization of Securities Commissions to be added to Alert Lists, she said.