Treasury makes crypto FPO amendments

The FSMA (Financial Promotion)(Amendment) Order 2023 has been made and takes effect on 7 October (but on 8 June in respect of FCA powers to make rules and guidance). The changes reflect changes to the exemptions to the financial promotion restriction in respect of qualifying crypto assets and:

  • confirm the exemption in Article 51 (associations of HNWI or sophisticated investors) does not apply to promotions of qualifying cryptoassets;
  • exclude qualifying crypto assets from the exemption for the sale of goods and services;
  • confirm that persons registered with FCA under the MLRs as crypto service providers can communicate their own promotions, and extends that exemption to those communicating on behalf of a registered person; and
  • add qualifying crypto assets as appropriate to the list of controlled activities and investments in Schedule 1.

Emma Radmore