The post FCA reports 221 breaches of its crypto marketing rules appeared on BitcoinEthereumNews.com.

In early October, the United Kingdom implemented new rules governing the promotion of cryptocurrencies. However, these regulations have faced numerous challenges as firms continue to breach them. The Financial Conduct Authority (FCA) of the UK revealed that there have been at least 221 breaches since the rules came into effect on October 8. The FCA’s concerns primarily revolve around the lack of visible risk warnings and insufficient information about the risks associated with crypto investments in these promotions. FCA cites a lack of information about the risks of products Additionally, firms have been found to make claims about the safety, security, or ease of using cryptocurrencies without adequately highlighting the potential risks involved. The FCA’s vigilant monitoring of these breaches started almost immediately after the rules were introduced. On October 9, the FCA issued 146 alerts on violations within the first 24 hours of the rules being enforced. While some of these alerts targeted illegitimate schemes promising high returns on crypto investments, legitimate businesses have also faced repercussions. Rebuildingsociety, a firm that partnered with Binance to comply with the FCA’s new marketing rules, had restrictions placed on it by the regulatory authority. As a result, Binance had to stop onboarding new users in the UK. The FCA has sent a clear message about the importance of regulatory compliance in the crypto advertising space. In one of its statements, it emphasized that authorized firms involved in approving financial promotions of crypto asset firms should take their regulatory obligations seriously. Failure to do so will result in regulatory action. Regulations and the path to consumer protection Furthermore, the FCA is actively collaborating with various stakeholders, including social media platforms, app stores, search engines, domain name registrars, and payment providers, to prevent banned promotions and block the flow of funds to them. The…

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Filed under: News - @ October 26, 2023 7:24 pm