The FCA has recently announced the rules for making financial promotions of crypto assets to consumers in Policy Statement 23/6
Crypto assets are now to be included into the High Risk Investments regime, so they will become subject to risk warnings, self-certification, cooling off periods and appropriateness tests in the way that other Restricted Mass Market Investments (e.g. Venture capital) are.
The FCA has also agreed to a number of small modifications to the regime for crypto assets which are set out in the Policy Statement.
In addition the regulator published a Guidance Consultation on how cryptoasset promotions can meet the fair, clear and not misleading rule. This provides general guidance for all cryptosasset promotions but also specific guidance for:
cryptoassets that claim a form of stability or which claim their value is linked to a fiat currency
cryptoassets that claim to be backed by a commodity or an asset
complex yield cryptoasset models or arrangements e.g. borrowing, lending and staking
The guidance also covers social media promotions, the due diligence that is required before marketing, and disclosures about both the ownership of the cryptoassets and about the firm’s regulated status.
All firms marketing cryptoassets to UK consumers, including those based overseas, must get ready for this regime now.
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