Offering Crypto in the UK? Follow These 10 Points to Abide by the New Rules

<p>Following the implementation of the Consumer Duty rules in the United Kingdom, crypto providers in the country are now required to comply with a fresh set of regulations around promotions, the deadline for which is approaching.

From 8th October, the
coverage of the UK’s Financial Services and Markets Act will be extended to “qualifying crypto assets”, requiring crypto firms to follow several sets of rules.</p><p>But, what is the definition of "qualifying crypto assets"? According to the <a href="https://www.financemagnates.com/terms/f/financial-conduct-authority-fca/">Financial Conduct Authority (FCA</a>), it covers “any
cryptographically secured digital representation of value or contractual rights
that is transferable and fungible, but does not include crypto assets which meet
the definition of electronic money or an existing controlled investment.”</p><p>Although the overall rules look brief, there are many details crypto companies need to consider, otherwise they will risk committing a criminal offense.</p><p>UK's New Crypto Marketing Rules</p><p>The
FCA supervises and enforces the implementation of the <a href="https://www.financemagnates.com/cryptocurrency/the-uks-fca-sends-final-warning-as-crypto-regulation-deadline-nears/">UK’s financial promotion
regime</a>. Lucy Castledine, the Director of Consumer Investments, has warned that: “Come
8th October, we will be taking action against firms illegally
marketing to UK consumers.” </p><p> From this
date, a financial promotion pertaining to qualifying crypto assets could only be
<a href="https://www.financemagnates.com/cryptocurrency/fca-provides-4-legal-routes-for-compliance-with-upcoming-crypto-promotion-rules/">lawfully made through one of four routes</a>:</p><ol><li>an authorised person
communicating the promotion;</li><li>an authorised persons
approving the promotion (known as a “section 21 approver”);</li><li>a crypto firm registered
under the Money Laundering Regulations communicating its own promotion; or</li><li>the promotion otherwise
complies with the condition of an exemption in the FPO. </li></ol><p>Failure to comply with the requirements
of the extended financial promotions regime could lead to restrictions on the company, inclusion in the warning list, and order to take down websites. In extreme cases, the violations could lead to the imprisonment of the responsible person for up to two years or an
unlimited fine, or both.</p><blockquote><p lang="en" dir="ltr">