British Minister Andrew Griffith has written to FCA chief Nikhil Rathi, expressing concern that the regulator has not made clear how industry companies must advertise their products and services to comply with local regulations. Griffith asked the FCA to be more tolerant of crypto companies that are unaware that their international websites may be violating the agency’s requirements.
“We need to simplify the rules for promoting marketing materials related to cryptocurrencies and bring more clarity to the regulatory regime. We want to avoid a situation where cryptocurrency companies decide to close down in the UK and move to other countries,” Griffith said.
New rules for the marketing of cryptocurrency content, which took effect on October 8, aim to ensure transparency in the cryptocurrency business and the accuracy of the information consumers receive from crypto companies. Failure to comply with these rules is punishable by a large fine or up to two years in prison. Given that Griffith sent a letter to the regulator several days before the rules came into force, and the FCA did not publish any clarification, the agency has not changed its position on this issue.
Recently, the British regulator blacklisted 143 companies, including popular crypto exchanges HTX and KuCoin. A few days ago, the FCA banned the Rebuildingsociety platform from advertising products from the world’s largest crypto exchange, Binance.
Source: Bits
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