Finally, we have the long-awaited next step in the ever-evolving regulatory framework that applies to crypto promotions. A new draft order that is expected to be introduced soon, snappily called the Financial Services and Markets Act 2000 (Financial Promotion) (Amendment) Order 2023.
As expected, most cryptoasset promotions will fall under the remit of the FCA, as part of a tougher regime aimed at protecting consumers.
Once the regime is in force there will be four routes to legally communicating a financial promotion for qualifying cryptoassets:
- the promotion is communicated by an authorised person;
- the content of the promotion is approved by an authorised person under Section 21;
- the promotion is communicated by, or on behalf of, a registered person;
- the promotion otherwise complies with the conditions of an exemption.
The FCA will be provided with rule-making, supervision and enforcement powers to enable it to have effective oversight of cryptoasset promotions. This will allow the FCA to apply financial promotions rules to cryptoasset promotions communicated by or on behalf of registered persons and to take action if such promotions do not comply.
You can find out more about this new regime in this article.