{"id":24115,"date":"2023-10-26T01:51:02","date_gmt":"2023-10-26T01:51:02","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/crypto-firms-have-already-breached-new-uk-promo-rules-221-times-says-fca\/"},"modified":"2023-10-26T01:51:04","modified_gmt":"2023-10-26T01:51:04","slug":"crypto-firms-have-already-breached-new-uk-promo-rules-221-times-says-fca","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/crypto-firms-have-already-breached-new-uk-promo-rules-221-times-says-fca\/","title":{"rendered":"Crypto firms have already breached new UK promo rules 221 times, says FCA"},"content":{"rendered":"

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Crypto-promoting firms have breached the United Kingdom\u2019s new crypto marketing rules at least 221 times since coming into force in early October, says the country\u2019s financial regulator. <\/p>\n

In an Oct. 25 statement, the U.K. Financial Conduct Authority (FCA) said since the Oct. 8 crypto promotion rules came into place, firms are still failing to provide visible enough risk warnings, provide adequate information about risks, and are making claims about the safety, security or ease of using crypto without highlighting the risks involved. <\/p>\n

The FCA\u2019s latest warning count comes after it said on Oct. 9 that it issued 146 alerts on breaches of the new rules in the 24 hours after the new regime went live.<\/p>\n

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Find out the 3 common issues we’ve identified with #cryptoasset<\/a> financial promotions.<\/p>\n

Consumers should check the FCA Warning List before making any investment in #crypto<\/a>https:\/\/t.co\/CKn4cFxb11<\/p>\n

\u2014 Financial Conduct Authority (@TheFCA) October 25, 2023<\/a><\/p><\/blockquote>\n

While many of the FCA\u2019s crypto-related alerts appear to be illegitimate schemes offering high-yield returns on crypto investments, the FCA has taken action against seemingly legitimate businesses as well. <\/p>\n

An Oct. 10 statement noted it had placed restrictions on Rebuildingsociety \u2014 the FCA-regulated firm Binance partnered with to approve its marketing and communications to comply with the FCA\u2019s new rules. Binance subsequently halted onboarding new U.K. users.<\/p>\n

\u201cWe expect authorized firms approving the financial promotions of cryptoasset firms to take their regulatory obligations seriously,\u201d the FCA statement said. \u201cWhere this is not happening, we will take action.\u201d<\/p>\n

It added it\u2019s working with social media platforms, app stores, search engines, domain name registrars and payment providers to remove, block and stop the flow of funds to banned promotions.<\/p>\n

Related: <\/em><\/strong>Largest DeFi protocol on Solana reportedly quits UK market, citing FCA rule<\/em><\/strong><\/p>\n

Under the new rules, crypto-related ads can only be promoted or approved by FCA-authorized or regulated firms and applies to all businesses \u2014 even those without a U.K. presence.<\/p>\n

The promotions must have \u201cprominent risk warnings\u201d and not incentivize investing in crypto. Promotions typical in overseas markets such as referral bonuses and memes are banned and restricted in the U.K.<\/p>\n

Transak compliance head James Young told Cointelegraph the FCA\u2019s regime is \u201cvery challenging\u201d for businesses to implement but believes the consumer protection will increase adoption \u201con an exponential scale.\u201d<\/p>\n

Magazine: <\/em><\/strong>NFT Collector: William Mapan\u2019s Distance sells out, NFT float in Macy\u2019s Parade, Nouns DAO forks<\/em><\/strong><\/p>\n