UK’s Financial Conduct Authority says crypto firms are failing to satisfy new promotional rules

Oct. 25, 2023

By Mike Dalton

The U.K.’s Financial Conduct Authority (FCA) said on Oct. 25 that many crypto firms are failing to meet its new promotion requirements.

The relevant rules came into effect on Oct. 8. Those rules require companies to warn users that they could lose their entire investment by investing in some crypto products. The rules also prohibit companies from offering referral bonuses, among certain other requirements.

The FCA now says that it has identified three common shortcomings. First, it says that companies have made claims about the safety, security, and ease of use of cryptocurrency services without highlighting the risks of those services.

Second, it said that some companies have not made their warnings sufficiently visible, as some warnings use small fonts or hard-to-see colors and positioning.

Third, it said that some firms have failed to set out the risks related to specific products adequately.