The UK’s Financial Conduct Authority (FCA) is rigorously overseeing cryptocurrency businesses, focusing on adherence to anti-money laundering protocols. In their recent announcement, the FCA has conveyed the completion of an extensive review of the industry, including consumer protection and marketing regulations. During the past year, the authority scrutinized 44 registered crypto asset companies.
Stringent Anti-Money Laundering Measures
The FCA’s statement emphasized efforts over the previous quarter to safeguard consumers through the imposition of fundamental regulatory measures. The examinations aimed to ensure these crypto firms were abiding by the stringent anti-money laundering guidelines prescribed by the FCA. Additionally, the authority investigated unregistered companies and the promotional activities carried out through affiliates and financial influencers, revealing widespread non-compliance.
Advertising Practices Under the Microscope
The FCA’s focus has also been on financial advertisements, where it expects due diligence on the part of endorsers to meet regulatory standards. This comes as a response to risks posed by foreign firms seeking to reach UK consumers with their promotions. The regulatory body has issued warnings about non-compliant advertisements, with 450 cautionary notes directed to consumers over the past three months. Similar actions have been observed in other countries, with regulators pursuing legal measures against external entities for unauthorized promotional activities.
To lawfully advertise in the UK, companies must either secure registration with the FCA or receive approval from an authorized firm. The FCA’s proactive stance serves as a reminder to the crypto industry of the importance of upholding regulatory compliance to ensure consumer protection and integrity within the financial market.