Crypto Firms are Adjusting to the FCA’s Demands. Here’s How
- Crypto companies like Binance have made changes to their apps to comply with the FCA’s laws.
- The FCA’s marketing rules require crypto companies to warn users about the risks of crypto investments.
- Some companies have faced difficulties complying with the FCA’s marketing rules and have suspended their operations in the UK.
The UK is set to witness major changes within the crypto space as several top platforms are adjusting to the demands of the UK’s Financial Conduct Authority (FCA). The financial watchdog listed over 140 crypto companies as “non-authorized” on Sunday, October 8, the day its marketing rules became effective.
However, companies like Binance, Revoult, and Coinbase have made updates to their applications to align with the new rules. Binance said it has partnered with a local platform and launched a new domain specifically for U.K. customers. The new page will only display Binance’s services and products that align with the FCA’s policies. Some of the supported services include Binance Pay, spot and margin trading, NFT marketplace, etc.
However, Binance noted that its academy and research, referral bonus, and gift card services will no longer be offered to UK users as part of its plans to comply with the new rules. In addition, crypto exchange OKX made several changes to conform with the FCA’s marketing laws. OKX reduced its token offerings to UK users to 40 and now displays a warning on its page advising users to learn about the risks of crypto investments.
Both Coinbase and Revolut informed their UK users of changes to their operations over the weekend. Some of the changes include risk disclaimers for cryptocurrency transactions.
Meanwhile, some cryptocurrency companies have had difficulty complying with the UK’s new advertising regulations. Others have decided to halt operations, including ByBit and Luno.
Additionally, PayPal briefly stopped allowing British customers to make cryptocurrency purchases as it worked to bring the app into compliance with the new rules.
Like the rest of the world, the UK has taken several steps to protect crypto operations, and part of those steps requires crypto companies to register their operations. The FCA said it has received 291 applications for registration since 2020 but only approved 38 of them.
Earlier this year, the FCA made changes to crypto marketing within the UK. The regulator noted that an FCA-authorized company would have to approve any marketing campaign for a crypto platform. In addition, the FCA’s rules require crypto companies to warn investors about the possible risks and dangers of crypto investments.
The FCA stated that all crypto-related marketing materials must be “clear, fair, and not misleading.” Furthermore, the marketing laws require crypto companies to give new customers a 24-hour cooling-off period.
The FCA previously urged crypto companies to comply with the new marketing rules from October 8. The regulator warned that defaulters could face “criminal offense punishable by an unlimited fine and/or up to two years imprisonment.”
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
