FCA Cracks Down on Illegal Crypto Advertising, Issues 450 Alerts in Q4 2023
Crypto News – The Financial Conduct Authority has emphasized the importance of firms diligently fulfilling their regulatory obligations when approving advertisements.
According to the U.K. financial regulator, it issued 450 consumer alerts in the final quarter of 2023 against firms unlawfully promoting cryptocurrencies. The authority urged companies responsible for authorizing advertisements to take their duties seriously.
The rules set forth by the Financial Conduct Authority regarding promotions came into effect on October 8. The issuance of alerts occurred between that date and December 31, as detailed in a report released on Wednesday.
To advertise, cryptocurrency companies must either be registered with the authority or have their advertisements approved by an authorized entity. These regulations mandate the inclusion of risk warnings and the implementation of a 24-hour cooling-off period for first-time purchasers.
“We will continue our rigorous enforcement efforts against firms engaged in illegal financial promotions throughout 2024,” stated the FCA.
Several companies, including Binance, the leading cryptocurrency exchange, have had to suspend their services in the U.K. Consequently, Binance’s advertising approver, Rebuildingsociety.com, was informed that it could no longer approve cryptocurrency advertisements, leading to challenges for the exchange in finding an alternative approver.
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