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As time progresses towards the implementation of the crypto asset financial promotion regime on 8 October 2023, the UK’s Financial Conduct Authority (FCA) has engaged a wide range of regulated crypto asset companies to assess their readiness.
According to the watchdog, some companies have neglected broad aspects of financial promotions, focusing only on traditional advertising and neglecting the content of their digital promotions. According to the FCA, the definition of financial promotions is broad, encompassing websites, blogs, mobile apps and various forms of content.
The FCA observes that compliance with the territorial scope of the regime for companies operating globally can be a complex challenge. With this in mind, the most prepared companies have implemented clear controls, implementing geo-blocking and KYC/AML measures to prevent UK consumers from accessing promotions aimed at other markets.
“The use of social media to promote financial services, including crypto assets, presents a number of particular issues and challenges,” the FCA said. “In July 2023, we issued consultation GC23/2 on updated guidance on financial promotion on social media. We recommend that all crypto asset companies wishing to promote to UK consumers consider this proposed guidance.”
Additionally, regulators have learned that some companies aim to increase brand awareness through sports sponsorship deals, such as partnerships with UK-based companies. In light of this, the FCA has warned that firms should be careful as any financial promotion rules also apply to brand advertising outside of certain categories.
Crypto Asset Company Implementation Plan
UK financial sector authorities also stressed the need for clear accountability among crypto asset companies ahead of the new regime. It states that the most prepared companies have appointed a senior individual, such as a CEO or COO, with overall responsibility obedience
Obedience In finance, banking, investment, and insurance, compliance refers to compliance with rules or orders set by government regulatory authorities, either when providing services or processing transactions. Compliance in financial matters is also the state of following established guidelines or specifications. This designation may also include efforts to ensure that the organization complies with industry regulations and government laws. Definition of Compliance Compliance is a In finance, banking, investment, and insurance, compliance refers to compliance with rules or orders set by government regulatory authorities, either when providing services or processing transactions. Compliance in financial matters is also the state of following established guidelines or specifications. This designation may also include efforts to ensure that the organization complies with industry regulations and government laws. Definition of Compliance Compliance is a
Creating the right format for risk alerts is still a work in progress for many companies. Compliance with prominence requirements, such as the placement of risk warnings and the choice of font size, is essential according to the FCA. Companies that are ready have examples of how risk warnings will be presented, ensuring a customer-friendly approach.
Meanwhile, Finance Magnate reported around three weeks ago that the FCA had set out clear expectations for crypto businesses operating in the UK regarding compliance with the Travel Rule. From 1 September 2023, crypto companies in the UK will be required to comply with the Travel Rule, which mandates the collection, verification and sharing of critical information regarding the transfer of crypto assets.
As time progresses towards the implementation of the crypto asset financial promotion regime on 8 October 2023, the UK’s Financial Conduct Authority (FCA) has engaged a wide range of regulated crypto asset companies to assess their readiness.
According to the watchdog, some companies have neglected broad aspects of financial promotions, focusing only on traditional advertising and neglecting the content of their digital promotions. According to the FCA, the definition of financial promotions is broad, encompassing websites, blogs, mobile apps and various forms of content.
The FCA observes that compliance with the territorial scope of the regime for companies operating globally can be a complex challenge. With this in mind, the most prepared companies have implemented clear controls, implementing geo-blocking and KYC/AML measures to prevent UK consumers from accessing promotions aimed at other markets.
“The use of social media to promote financial services, including crypto assets, presents a number of particular issues and challenges,” the FCA said. “In July 2023, we issued consultation GC23/2 on updated guidance on financial promotion on social media. We recommend that all crypto asset companies wishing to promote to UK consumers consider this proposed guidance.”
Additionally, regulators have learned that some companies aim to increase brand awareness through sports sponsorship deals, such as partnerships with UK-based companies. In light of this, the FCA has warned that firms should be careful as any financial promotion rules also apply to brand advertising outside of certain categories.
Crypto Asset Company Implementation Plan
UK financial sector authorities also stressed the need for clear accountability among crypto asset companies ahead of the new regime. It states that the most prepared companies have appointed a senior individual, such as a CEO or COO, with overall responsibility obedience
Obedience In finance, banking, investment, and insurance, compliance refers to compliance with rules or orders set by government regulatory authorities, either when providing services or processing transactions. Compliance in financial matters is also the state of following established guidelines or specifications. This designation may also include efforts to ensure that the organization complies with industry regulations and government laws. Definition of Compliance Compliance is a In finance, banking, investment, and insurance, compliance refers to compliance with rules or orders set by government regulatory authorities, either when providing services or processing transactions. Compliance in financial matters is also the state of following established guidelines or specifications. This designation may also include efforts to ensure that the organization complies with industry regulations and government laws. Definition of Compliance Compliance is a
Creating the right format for risk alerts is still a work in progress for many companies. Compliance with prominence requirements, such as the placement of risk warnings and the choice of font size, is essential according to the FCA. Companies that are ready have examples of how risk warnings will be presented, ensuring a customer-friendly approach.
Meanwhile, Finance Magnate reported around three weeks ago that the FCA had set out clear expectations for crypto businesses operating in the UK regarding compliance with the Travel Rule. From 1 September 2023, crypto companies in the UK will be required to comply with the Travel Rule, which mandates the collection, verification and sharing of critical information regarding the transfer of crypto assets.
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