Financial promotion rules for cryptoassets

Changes in financial promotions regime coming into force in October 2023 will apply to all firms marketing cryptoassets to UK consumers regardless of whether the firm is based overseas or what technology is used to make the promotion.

There will be 4 routes to legally promoting cryptoassets to consumers.Promotions that are not made using one of these 4 routes will be in breach of section 21 of the Financial Services and Markets Act 2000 (FSMA), which is a criminal offence punishable by up to 2 years imprisonment, the imposition of a fine, or both.

Route one

The promotion is communicated by an authorised person.

Route TWO

The promotion is made by an unauthorised person but approved by an authorised person.

Route THREE

The promotion is communicated by (or on behalf of) a cryptoasset business registered with the FCA under the MLRs in reliance on the exemption in the FPO.

Route FOUR

The promotion is otherwise communicated in compliance with the conditions of an exemption in the FPO.

Unique on every block

A firm only authorised under the Electronic Money Regulations, or the Payment Services Regulations is not considered an ‘authorised person’ so cannot communicate or approve financial promotions.

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