FCA’s policy statement on financial promotion rules for cryptoassets
On 8 June 2023, the Financial Conduct Authority (FCA) published a policy statement on the financial promotion rules for cryptoassets (PS23/6). These rules will take effect from 8 October 2023.
This followed the passing of parliamentary legislation which brought ‘qualifying cryptoassets’ within the scope of the Financial Promotions Order (FPO), on 7 June 2023.1
Broadly, ‘qualifying cryptoassets’ are any cryptographically secured digital representation of value or contractual rights that is transferable and fungible (including exchange tokens such as Bitcoin). This would exclude instruments that already fall within the regulatory perimeter (e.g., securities, derivatives and units in collective investment schemes), electronic money, non-fungible tokens (NFTs) or cryptoassets that can be used only in a limited network.
The proposed rules on financial promotions will apply to all firms marketing qualifying cryptoassets to UK consumers regardless of whether the firm is based in the UK or overseas or what technology is used to make the promotion (i.e., social media or website).
In light of the new regime, UK and overseas firms marketing cryptoassets to UK consumers will need to reconsider and recalibrate their approach to ensure compliance with the new regime.