The Financial Conduct Authority (FCA) has outlined three common issues with cryptoasset promotions since introducing new crypto advertising rules on 8 October.

The authority said issues included promotions making claims about the safety, security or ease of using cryptoasset services without highlighting the risk involved, risk warnings not being visible enough, and firms failing to provide customers with adequate information on the risks associated to specific products being promoted.

Noting that it expects authorised firms approving the financial promotions of cryptoasset firms to “take their regulatory obligations seriously,” the FCA cautioned that where this is not happening, it would take action and has already imposed restrictions on rebuildingsociety.com from approving cryptoasset financial promotions.

The FCA said it is continuing to work 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 and recommended these businesses should consider the alerts issued and “play their part” in protecting UK consumers.

Within the first 24 hours of introducing its new regime, the authority said it had issued 146 alerts.

As of 25 October, 221 alerts have been issued, with the FCA noting that the list will be continually updated as it continues to “identify firms which may be illegally communicating cryptoasset promotions and are failing to engage with us constructively.”

Share Story: