With a recent legislative change, crypto-asset promotions for UK consumers now fall under the supervision of the Financial Conduct Authority (FCA), the financial regulator.。The rules introduced by the FCA aim to give people a better understanding of who they are investing in and the risks involved。

Following the consultation, the regulator has now issued a "Guide" to further support cryptocurrency companies in complying with the new marketing rules.。The guidance also details how authorized companies that disseminate or approve financial promotions should apply consumer responsibility in their marketing activities.。

Lucy Castledine, Director of Consumer Investments at the FCA, said: "While the new rules for companies marketing cryptocurrencies to UK consumers are consistent with existing rules for other high-risk investments, we have communicated extensively with the industry and designed this Guide to specifically support cryptocurrency companies in complying with the rules.。"

The crypto-asset industry and the global regulatory environment are moving at a rapid pace, so the FCA says it will continue to liaise with businesses and keep the Guide under constant review.。

To further support businesses in making the necessary improvements to their marketing, the FCA has previously published good and bad practice examples of companies preparing for the new financial promotion rules.。Despite these new rules, crypto assets remain high-risk and people should be prepared for investment failures, says regulator。

Consumers should review the warning list before making any investment in crypto assets。The list will help consumers make more informed investment decisions, finding details of unauthorized companies known to the FCA。It can also help consumers understand which companies may be offering or promoting financial services or products in the UK without permission.。

The FCA provides crypto-asset companies registered or authorized by the FCA with the flexibility to implement some of the rules that require more technological development by agreeing to changes.。If the application is successful, these companies will implement a 24-hour cooling-off period, customer suitability testing and customer classification functions by January 8, 2024.。All other measures of the financial promotion regime are effective from 8 October 2023。

From 8 October 2023, companies wishing to promote crypto assets to retail consumers in the UK must be authorised or registered with the FCA by law, or their marketing activities approved by authorised companies.。The rules for marketing crypto assets to UK consumers are in line with current rules for other risky investments。The rules for the promotion of crypto assets came after consultations with the government on a future financial services regulatory regime for crypto assets, as well as collaboration with international peers and the wider industry.。

The FCA also said it would publish a discussion paper in the near future with proposals for regulation of stablecoins used in UK payments.。