Crypto has 3 months to clean up UK ads — or face jail and ‘unlimited’ fines

No matter where companies are based, all crypto marketing in the UK must stick to strict regulations starting October 8

article-image

Octus_Photography/Shutterstock modified by Blockworks

share

The UK financial watchdog is calling on crypto firms to fall in line with the regulator’s new rules for ads by October. 

The Financial Conduct Authority’s new rules target how companies communicate information about their crypto-related products on websites, apps, social media and online ads.

Even crypto businesses based elsewhere in the world with ads that reach UK-based individuals will have to comply with the rules, according to a July 4 notice.

Once the regime comes into effect on October 8, there will be four legal paths for crypto firms to market to UK consumers, including regulator authorization and exemptions.

Crypto firms marketing to UK consumers have been asked to figure out which paths they’ll take and how they’ll handle UK customers if they can’t promote to them. 

The FCA has imposed a deadline of Aug. 4 for these businesses to respond with what steps they will take to prepare for the regime.

What if crypto ignores the UK rules?

The FCA has warned it will be tough with companies illegally promoting crypto to UK consumers.

Firms or individual promoters flouting these rules could end up with up to two years in jail, pay “unlimited” fines or both. 

The regulator expects a key way towards compliance is to register under Money Laundering and Terrorist Financing Regulations. There is a fee to register and it could take up to three months to get approval.

Any firm hoping to be helped through the process will have to find themselves independent legal advice, rather than turning to the FCA for help.

Loading Tweet..
UK regulators last year banned a Lodon ad campaign for memecoin Floki Inu

Last year, more than 50 cryptocurrency firms in the UK found themselves recipients of enforcement notices, which instructed them to review their advertising practices. 

They were accused of engaging in misleading advertising targeted at consumers and acting in a socially irresponsible manner.

The UK Advertising Standard Authority ruled the companies could not incite a “fear of missing out” within potential investors regarding digital assets.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Permissionless is a conference for founders, application developers, and users. Come meet the next generation of people building and using crypto.

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

4.png

Research

This months PPGC covered four main areas. Firstly, debriefing the progress and status of the mainnet implementation of the Ahmedabad hard fork. Secondly, a retrospective on the testnet phase of the Ahemdabad Hard Fork. Thirdly, an update on PIP-36 which involves replaying failed state syncs. Lastly, PIP-47 which pushes upgrades to the Polygon Protocol Council.

article-image

Sygnum’s head of investment researchthinks Solana can pass Ethereum by drawing institutions for tokenization platforms and stablecoins

article-image

Plus, NFT trading volumes are seeing all-time lows

article-image

And could BitGo’s offering dump the entire stablecoin market on its head?

article-image

Institutions to test out the settlement of “digital assets and currencies” on a network that annually carries more than 5 billion financial messages

article-image

After Bitwise’s XRP ETF filing this week, one industry watcher notes: “Politics will determine whether this happens soon or in a few years”

article-image

Plus, a look back at some of the SEC’s biggest enforcement moves under Gurbir Grewal