• The United Kingdom (UK) has granted final approval to the Financial Services and Markets Act (FSMA) 2023, which seeks to promote the secure adoption of cryptocurrencies within the UK.
• The FCA of the UK has issued an official notice urging crypto asset companies engaged in user marketing to ensure compliance by October 2023.
• Failure to comply with the FSMA can result in criminal charges for crypto firms operating under the FCA’s regulatory framework.
UK Passes Financial Services and Markets Bill
The United Kingdom (UK) has taken a significant step towards enhancing regulatory transparency for cryptocurrencies by granting final approval to a bill concerning digital assets. The Financial Services and Markets Act (FSMA) 2023 has received Royal Assent, marking the conclusive stage in its journey towards becoming a law. This act grants regulators the authority to establish a comprehensive framework that promotes the secure adoption of cryptocurrencies within the United Kingdom. Additionally, it empowers HM Treasury of the UK to establish regulations specifically tailored to the crypto industry.
FCA Urges Crypto Asset Companies To Comply By October 2023
Recently, The Financial Conduct Authority (FCA) of the United Kingdom issued an official press release urging all crypto asset companies engaged in user marketing to ensure compliance by October 2023. These promotions include websites, online adverts, mobile applications, and social media posts. In a recent LinkedIn post , Jayson Probin, the crypto financial promotions lead at FCA highlighted potential consequences for non-compliance: criminal charges could be brought against firms who fail to adhere with this new regulation set out by FSMA or other regulatory bodies such as FCA.
Options For Crypto Firms Engaged In User Marketing
The approved bill grants four options available for cryptocurrency firms operating under FCA’s regulatory framework when engaging in user marketing while adhering guidelines set out by FCA: obtaining approval or communication of a promotion from an authorized entity; developing promotion through company registered with FCA; having promotion that falls under exclusions specified in FSMA; or communicating only factual information about products/services without making any direct sales pitches or suggesting customer should buy products/services being offered.
Potential Consequences Of Non-Compliance
Failure on behalf of these cryptocurrency firms may result in appropriate measures being taken by both FSMA and FCA including placing firm on warning list issuing demands to remove websites/apps/social media content etc.. Such measures could also include criminal charges depending on severity of violation committed against laws set out by either body mentioned above – FSMA or FCA .
Conclusion
With this move towards legislation, it is expected that more clarity will be provided around digital assets such as Bitcoin and Ethereum within UK’s jurisdiction leading way towards widespread acceptance & use cases for cryptocurrencies in various areas such as payments & investments .
