In a letter sent by the department to companies working with digital assets, the FCA regretted their lack of active interaction with the financial regulator. The FCA recently extended the deadline for industry companies to comply with advertising requirements for their products and services until 8 January 2024.
However, the regulator said that despite its concessions, many unregistered overseas companies offering crypto assets to UK customers were not complying with marketing rules. Just 24 organizations responded to the FCA’s request, which was sent to more than 150 firms. The lack of feedback raises serious concerns that unregistered companies are reluctant to comply with the new rules.
The FCA has repeatedly warned crypto companies to bring their advertising materials in line with new regulatory requirements. Any advertising of cryptocurrency products and services must be accompanied by a clear warning to investors about the high risks of losing funds. Beginning investors should also be given a 24-hour cooling-off period to give them the opportunity to withdraw from the investment.
The agency warned that if crypto companies do not comply with the new requirements, the regulator will blacklist them, and their advertising materials will be removed and blocked. The regulator has advised firms to seek legal advice to avoid committing a criminal offense and facing enforcement action.
Last year, the agency said that in recent years, cryptocurrency crimes have become a leader in financial fraud, which explains the tightened oversight of the industry.
Source: Bits
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