Financial Conduct Authority Issues New Guidance On Crypto Asset Marketing

On July 4, 2023, the United Kingdom's Financial Conduct Authority (FCA) issued a letter regarding crypto-asset financial promotion rules effective as of October 8, 2023. The new guidance supplements the FCA's previously issued policy statement applying the U.K.'s financial promotions regime "to all firms marketing cryptoassets to UK consumers r,egardless [sic] of whether the firm is based overseas or what technology is used to make the promotion."

Promotions of crypto assets will be brought under the purview of the Financial Services and Markets Act 2000 (FSMA) by The Financial Services and Markets Act 2000 (Financial Promotion) (Amendment) Order 2023 (the "Amendment Order") which is due to come into force on October 8, 2023. As set out in FSMA, financial promotion encompasses a broad range of activity, including electronic communications and communications made from outside the U.K., even when not targeted solely at U.K. consumers, if the communication is capable