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FCA finds firms trying to fudge rules on crypto promotions

FCA finds firms trying to fudge rules on crypto promotions

The Financial Conduct Authority is taking aim at crypto firms trying to dodge new rules on financia promotions by posting illegible warning notices.

In the 17 days since the new crypto promotion regime kicked off, the FCA has issued 221 alerts to non-compliant firms and already placed restrictions on an authorised firm - rebuildingsociety.com - to restrict it from approving cryptoasset financial promotions.

Now the regulator is going after firms that are trying to fudge the rules by failing to highlight the risks involved and posting risk warnings that are not visible enough due to small fonts, hard-to-read colouring or non-prominent positioning.

"We expect authorised firms approving the financial promotions of cryptoasset firms to take their regulatory obligations seriously," states the FCA. "Where this is not happening, we will take action."

The regulator says it is also working with businesses including social media platforms, app stores, search engines and domain name registrars to remove or block illegal promotions.

"We are also working with payments firms to limit UK consumer exposure to firms issuing illegal promotions," states the FCA. "These businesses should consider the alerts we have issued and play their part in protecting UK consumers."

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