FCA has continued to look closely at cryptoasset promotions following the new rules that took effect from 8 October. It has identified 3 common problems in these promotions:
- promotions that make claims about the safety, security or ease of using crypto services but that do not highlight the risk involved;
- risk warnings that are in small font, poor colouring or non-prominent positions, that mean they are not sufficiently visible;
- lack of adequate information on the risks of specific products that are being promoted.
FCA has now issued 221 alerts on illegal promotions since 8 October, and has now placed restrictions on one authorised firm to restrict it from approving crypto promotions. It will continue to take action where it feels firms are not taking their obligations seriously.