Emma RadmoreFCA has reminded all crypto firms of the Government’s intention to bring all promotions to UK customers by cryptoasset firms within the scope of the financial promotions regime. Once the changes take effect, any firm – including overseas firms – marketing to UK customers may do so only if:
- the communication is communicated or approved by a FSMA authorised person (ie not a firm authorised only under the EMRs of PSRs);
- the communication is communicated by a cryptoasset business that is registered with FCA; or
- the promotion otherwise falls within an exemption in the Financial Promotions Order.
The legislation effecting the changes has not yet been made, but the Government intends the changes to take effect 4 months after it is. FCA will make its rules once the legislation is made but intends in principle to take an approach consistent with its new approach to financial promotions of other high risk investments.