The FCA assesses crypto firms’ compliance with financial promotion rules, highlighting the need for improvements and warning of potential regulatory actions.
Points
- FCA evaluates crypto firms’ adherence to financial promotion rules.
- Highlights the need for improvements and compliance.
- Warns of potential regulatory actions against non-compliant entities.
- Encourages firms to engage directly with the FCA for clarity and guidance.
The Financial Conduct Authority （FCA） recently evaluated how crypto firms adhere to financial promotion rules, focusing on personalized risk warnings, mandatory 24-hour cooling-off periods, client categorization, and appropriateness assessments. The evaluation revealed that while some firms demonstrated good practices, many did not meet the required standards.
“Firms have requested additional clarity on our expectations for these rules. We want to work collaboratively with the sector to raise standards, and this publication will help firms meet their obligations and support consumers in making informed decisions,” the FCA noted.
The FCA emphasized the need for firms to improve compliance, providing examples of good and poor practices to guide them. Firms are encouraged to read the published guidance, GC23/1, and avoid relying on industry comparisons due to widespread poor practices in the market. Instead, firms should engage directly with the FCA to raise standards.
The regulator pledged to take action against non-compliant entities, including leveraging the financial promotions regime when assessing applications under the future financial services regulatory regime for crypto assets. The FCA remains committed to working with the industry to enhance compliance and support consumers in making informed decisions.
Despite a voluntary agreement to limit onboarding high-risk clients, some firms onboarded and served over 13,400 high-risk customers. Over 30% of these clients deposited nearly $25 million, used for withdrawals and crypto transactions totaling approximately $226 million.
解説
- The FCA’s evaluation highlights the need for improved compliance with financial promotion rules among crypto firms.
- Firms should engage directly with the FCA for clarity and guidance to meet regulatory standards.
- Non-compliant entities face potential regulatory actions, emphasizing the importance of adherence.
- The FCA’s commitment to working with the industry aims to support informed consumer decisions and raise market standards.