The three-month compliance extension will be given only to select companies.
The Financial Conduct Authority (FCA) of the United Kingdom, the country's financial regulatory body, has issued a notice giving crypto businesses additional time to comply with new advertising regulations.
Initially slated for October 2023, the deadline has been extended to January 2024 for approved companies facing technical issues.
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The newly announced financial promotion rules mandate that all cryptocurrency-related advertising must be "clear, fair, and not misleading."
Lucy Castledine, FCA's consumer investments director, stated:
Crypto firms must market to UK consumers clearly, fairly, and honestly. And they must provide risk warnings people understand. As a proportionate regulator, we’re giving firms that apply a little more time to get the other reforms requiring technology and business change right.
The compliance regulations extend beyond companies physically located in the UK. Any promotion, whether it be through "websites, mobile apps, social media, or online advertising," that has an impact within the UK must adhere to these rules. Firms failing to comply could face stern measures.
The FCA modified the original enforcement timeline in response to the crypto industry’s unique needs. According to a letter dated September 7th, the changes are aimed at companies that had not adequately considered how these rules apply to their specific services and the major changes needed for compliance.
Companies granted the extension will have until January 8th, 2024, to comply, while others will still need to meet the original October 8th, 2023, deadline.
The regulatory body also emphasized that companies need to register with the FCA to operate in the crypto sector in the UK. As of the latest update, 42 crypto firms have successfully registered and are in compliance with the FCA's requirements.
The UK's Financial Conduct Authority showed flexibility by extending the deadline for crypto firms to comply with its marketing regulations. This move reflects the regulator's understanding of the unique challenges facing the rapidly evolving cryptocurrency industry as it seeks to find a balance between consumer protection and technological advancement.
