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Crypto Firms Face Heat as FCA Tightens UK Advertising Rules

Key Takeaways

  • ​In October, the FCA issued warnings to unregistered crypto firms, including HTX, for offering services without UK authorization;
  • The FCA filed a lawsuit against HTX for promoting crypto in the UK without registration;
  • UK crypto rules require FCA registration and strict ad standards, including risk warnings, education links, and ID checks.

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Crypto Firms Face Heat as FCA Tightens UK Advertising Rules

The UK’s Financial Conduct Authority (FCA) has taken stricter steps to regulate cryptocurrency companies.

In October, it issued warnings to many platforms that were offering services without the required approval. Among those named were Elite Bit Markets, Nexure Gainbit, Plux Crypto, and HTX.

The FCA also filed a case against HTX for promoting crypto services to UK residents without proper registration. A spokesperson confirmed that the regulator will act when companies fail to comply with its rules.

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To operate or advertise in the UK, crypto businesses must be officially registered with the FCA under anti-money laundering laws.

They must also comply with rules introduced in 2023, which cover how financial products, including cryptocurrencies, are promoted to the public.

These advertising rules are designed to protect consumers. They require firms to clearly warn users about the risks of investing in digital assets. Companies must also include educational content and identity checks as part of their sign-up process.

The FCA classifies financial products into three categories based on risk. The lowest-risk products, such as public company shares, can be promoted without limits.

Most cryptocurrencies fall into the middle category, which allows promotion but under stricter conditions.

Recently, Poland’s parliament approved a new crypto-focused bill, known as Bill 1424. What does the bill cover? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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