The Financial Conduct Authority (FCA) has issued nearly 150 alerts on the first day of its new crypto marketing regime, in a crackdown on unauthorised crypto firms.
The new regulations, which came into force at the beginning of the week, mean firms promoting crypto in the UK must now be authorised or registered by the industry watchdog.
Alternatively, the FCA – which is attempting to clamp down on rogue marketing tactics – has allowed crypto firms to have their marketing approved by an authorised firm in advance.
Yet, despite months of warnings, within 24 hours 146 alerts were issued to firms who were advertising crypto investments without registration or authorisation from the FCA.
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Among the firms hit with warnings were ironically named Legit Crypto Mining and Wavy Crypto, while Safe Cryptomining Fx, Markets Analyst and CryptoGold also had alerts placed on them.
“We expect businesses including social media platforms, app stores, search engines, domain name registrars and payments firms to consider the alerts we have issued and play their part in protecting UK consumers from illegal promotions,” the FCA said.
“Consumers should check the warning list before making any investment in crypto. The list will help consumers understand where firms’ promotions may be breaking the law and to consider the promotion with the full information available.”
Noting that it takes a risk-based approach, and that not every potentially concerning firm has been included on the list yet, the FCA added:
“This list will be continually updated as we identify firms which may be illegally communicating cryptoasset promotions and are failing to engage with us constructively.
The new regulations – described by analysts at the time as an attempt to give consumers “extra protection in the crypto wild west” – is thought to rewuire a major shift in strategy for many crypto firms.
Alongside other new rules, crypto firm’s promotions must be clear and labelled with prominent risk warnings and certain marketing schemes, such as a ‘refer-a-friend bonus- has now been banned.
