The FCA’s final rules for cryptoasset financial promotions, published in June 2023, will take effect from Sunday 8 October. Those marketing in-scope cryptoassets to UK consumers, including those based overseas, will need to ensure without delay that preparations are in place for the start of the rules.
There is no doubt that the implementation period, which was shortened to four months from the six months originally proposed, has been a challenging deadline for the industry to achieve. However, in welcome news, the FCA has recognised the technological difficulties in preparing “back end” changes to meet the implementation deadline, offering a partial transition period to certain firms to enable changes to be made.
Whilst many firms already operating in the UK will be well-aware of these rules, overseas firms and new entrants to the market may still be facing a steep compliance build to comply with the new FCA rules. With the introduction of new rules on the financial promotion of cryptoassets fast approaching, we set out a summary of the rules and legal routes for promotion going forward, along with some do’s and don’ts to help firms make their final compliance preparations.
Jasmine Ginty, Trainee Solicitor, contributed to the drafting of this alert.
Click here to read the full alert.