FCA Issues Warning To Cryptoasset Firms

The FCA has warned cryptoasset firms to get ready for new rules controlling their financial promotions that reach UK residents. Regardless of whether they are operating from the UK or from abroad, cryptoasset providers are going to be required to ensure that promotions are:

• issued by an FCA-authorised firm (the majority of cryptoasset firms are not authorised);
• approved by an FCA-authorised firm that has passed through an FCA "gateway" and has been assessed as suitable to perform the approval process to an appropriately detailed level;
• issued by a cryptoasset firm registered with the FCA for the purposes of supervision under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (the "MLRs") – registration under the MLRs involves fit and proper assessments and reviews of conduct, solvency and past history by the FCA as the supervising authority;