Rules governing the promotion of crypto assets went into effect in the UK on October 8, however, it is being faced with low compliance in response, the Financial Conduct Authority (FCA) issued further directives to assist cryptocurrency companies in conforming to regulations.
On November 2, the FCA issued “finalized non-handbook guidance” regarding conformance with the regulations for crypto firms. Additionally, it included the regulatory agency’s reply to comments made by the industry. Lucy Castledine, director of consumer investments for the FCA, issued the following statement:
“While the new rules for firms marketing crypto to UK consumers are aligned with the existing rules for other high-risk investments, we’ve engaged extensively with industry and designed this Guidance to support crypto firms complying specifically.”
Since the publication of the new regulations on June 8, the FCA has issued several reminders and cautions regarding the cryptocurrency sector, demonstrating its favorable disposition towards the industry.
Additionally, certain technical deadlines have been extended until January 8, 2024. Notwithstanding these measures, several market participants declared their withdrawal from the United Kingdom as a reaction to the regulations, and adherence to them has been appalling ever since their inception.
While the authors acknowledge that the 32-page guidance reflects a new “secondary international competitiveness objective” and addresses expectations for firms’ domestic conduct, it does not impose any new obligations on crypto firms.
The guidance section of the text highlighted significant portions of the relevant legal documents and regulations. Respondents’ comprehensive responses to inquiries during the consultation phase comprise the second section.
The United Kingdom adopted the Travel Rule of the Financial Action Task Force on September 1. It is anticipated that stablecoin regulation legislation will be introduced to Parliament the following year.
