In an attempt to bolster regulatory control over cryptoassets, the Financial Conduct Authority (FCA), UK’s financial regulator, has issued what seems to be a final warning to all engaged in the marketing of ‘qualifying cryptoassets’. This direction, even though specifically targeted at UK companies, holds broader implication; companies across the globe marketing these assets to customers in the UK will need to adhere to the financial promotions regime of the FCA.
The directive, regardless of the technology or country of operation, is set to significantly impact the way cryptoasset businesses market their products to customers in the United Kingdom. This is especially salient for crypto businesses which have not registered with the FCA.
With talk of cryptoassets permeating global discussions, as well as the heightened appeal that these investments carry in the digitized world of banking and finance, this regulatory clampdown aims to ensure these market practices are carried out in a controlled, responsible manner.
While the FCA’s move may be received with mixed responses from the corporate world, it underlines the global trade laws’ trajectory towards stricter financial regulations in the expanding universe of digital currencies and assets.