The UK’s Financial Conduct Authority (FCA) wants to boost its rules. They are all set to boost how high-risk financial products with the help of the crypto marketing and crypto promotions
The regulator has issued draft rules this morning, proposing restrictions on the marketing of certain crypto assets. The rules essentially bar firms from promoting crypto products to users without assessing their financial knowledge and experience.
The draft rules come a day after HM Treasury, the UK’s finance ministry, confirmed that it intends to extend the scope of the Financial Promotions Order to include “qualifying” crypto assets.
“We only want consumers to access [cryptoassets] knowingly, and after they have been assessed as having sufficient knowledge and experience to understand the risks involved,” said the FCA.
“We are therefore proposing to apply the same financial promotion rules to crypto-assets.”
Such investments can generally be mass marketable, but subject to certain conditions.
These conditions include categorizing the recipient of a crypto promotion. They are either certified as a high-net-worth investor, a certified sophisticated investor or a self-certified sophisticated investor
Secondly, firms must consider the consumer’s investment knowledge and experience to assess whether the product is appropriate for them.
The FCA is inviting feedback on its draft rules by March 23 and intends to confirm its final rules in summer of this year.
Secondly, firms must consider the consumer’s investment knowledge and experience to assess whether the product is appropriate for them.
Several countries have recently tightened their rules around crypto promotions, including Singapore and Spain.
