FCA Steps Up Crypto Enforcement: Over 1,000 Warnings and 48 Apps Removed Since October
The UK's Financial Conduct Authority (FCA) has intensified its crackdown on crypto firms, issuing over 1,000 warnings and removing 48 apps from UK app stores since new financial promotion rules took effect last October, Coindesk reported, citing the regulator. This enforcement highlights the regulator's commitment to safeguarding consumers in the rapidly evolving crypto market.FCA's Aggressive Stance on Crypto FirmsFCA has taken a proactive approach to regulate the crypto industry. Since the financial promotion rules for crypto companies came into effect on October 8 last year, the FCA has issued more than 1,000 warnings to firms that failed to comply. Lucy Castledine, the regulator's director of consumer investments, shared these insights in a recent interview with the media publication.The FCA's actions have had significant repercussions. The regulator's efforts have led to the removal of 48 apps from UK app stores. Castledine emphasized the FCA's ongoing commitment to monitoring and taking down illegal activities. "We will continue to act where we see firms acting illegally," she stated, underscoring the importance of these measures in protecting UK consumers from unregistered and potentially harmful crypto promotions.The FCA isn't working alone in this endeavor. The regulator is collaborating with third parties, including social media companies, to identify and remove illegal websites and content promoting unregistered crypto firms. This multi-faceted approach aims to curb the spread of misleading information and ensure that only compliant firms can reach potential investors.New Guidance for Registered FirmsOn Wednesday, the FCA published new guidance for registered firms, highlighting examples of both good and poor practices in the industry. The rules mandate that firms take reasonable steps to verify whether a consumer is a restricted, high-net-worth, or certified sophisticated investor before making any financial promotions.The report acknowledged that while most firms allowed customers to self-categorize correctly, there were instances of poor practice. Some firms guided consumers through the self-categorization process, telling them what information to enter to proceed. The FCA flagged these practices as concerning and reiterated the need for stricter adherence to the rules. This article was written by Jared Kirui at www.financemagnates.com.
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The UK's Financial Conduct Authority (FCA) has intensified its crackdown on crypto firms, issuing over 1,000 warnings and removing 48 apps from UK app stores since new financial promotion rules took effect last October, Coindesk reported, citing the regulator. This enforcement highlights the regulator's commitment to safeguarding consumers in the rapidly evolving crypto market.
FCA's Aggressive Stance on Crypto Firms
FCA has taken a proactive approach to regulate the crypto industry. Since the financial promotion rules for crypto companies came into effect on October 8 last year, the FCA has issued more than 1,000 warnings to firms that failed to comply. Lucy Castledine, the regulator's director of consumer investments, shared these insights in a recent interview with the media publication.
The FCA's actions have had significant repercussions. The regulator's efforts have led to the removal of 48 apps from UK app stores. Castledine emphasized the FCA's ongoing commitment to monitoring and taking down illegal activities. "We will continue to act where we see firms acting illegally," she stated, underscoring the importance of these measures in protecting UK consumers from unregistered and potentially harmful crypto promotions.
The FCA isn't working alone in this endeavor. The regulator is collaborating with third parties, including social media companies, to identify and remove illegal websites and content promoting unregistered crypto firms. This multi-faceted approach aims to curb the spread of misleading information and ensure that only compliant firms can reach potential investors.
New Guidance for Registered Firms
On Wednesday, the FCA published new guidance for registered firms, highlighting examples of both good and poor practices in the industry. The rules mandate that firms take reasonable steps to verify whether a consumer is a restricted, high-net-worth, or certified sophisticated investor before making any financial promotions.
The report acknowledged that while most firms allowed customers to self-categorize correctly, there were instances of poor practice. Some firms guided consumers through the self-categorization process, telling them what information to enter to proceed. The FCA flagged these practices as concerning and reiterated the need for stricter adherence to the rules. This article was written by Jared Kirui at www.financemagnates.com.
