The UK Financial Conduct Authority to Crack Down on Companies that Break Crypto Promotion Guidelines
The Financial Conduct Authority (FCA) in the UK is set to take swift action against companies that violate the new Crypto Promotion Guidelines. Starting on October 8, the FCA will implement new systems to regulate companies offering crypto-related services.
Stricter Regulations and Enforcement Procedures
Cryptocurrencies have been categorized as “restricted block” market investments in the UK, meaning they can be promoted to consumers with certain conditions. The new regulations, proposed in June, aim to simplify cryptocurrency advertising and will apply to all digital asset marketing companies in the UK, regardless of their location.
Lucy Castledine, director of Consumer Investments at the FCA, stated that the scope of regulations will be expanded, and violations will be monitored on an hourly basis. The FCA will also examine over 100,000 sites per day for non-compliance and coordinate with local and international law enforcement agencies to take action against violators.
Additionally, the FCA will collaborate with technology companies to remove websites and apps that do not adhere to the new rules. The regulations also require clear risk warnings to encourage users to understand cryptography from both theoretical and practical perspectives.
Cryptocurrency Companies Leaving the UK
Following the issuance of these new rules, several cryptocurrency platforms, including ByBit, Luno, and PayPal, have chosen to discontinue their services in the United Kingdom. However, other companies like Bitget, Komainu, and OKX are looking to expand their offerings in the country and fill the gaps left by these platforms.
In an effort to comply with the regulations, Binance has launched a dedicated domain for its UK users. The domain will only provide services that align with the updated rules set by the FCA, which means certain services like gift cards and referral bonuses will be discontinued.
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