"New Rules Require Cryptoasset Firms To Market Clearly and Accurately to Consumers Starting October 8th"

The Financial Conduct Authority (FCA) is introducing new rules on the marketing of cryptoassets, designed to protect UK consumers. These rules will include prohibitions on certain types of promotions, such as 'refer a friend' bonuses, and insist that marketing materials are ‘clear, fair and not misleading’, labelling risks with prominent warnings. The core rules for compliance are due to come into effect from 8th October 2023, but firms may opt-in for an extended implementation period until 8th January 2024 if they require more time to make the necessary back-office changes. Action will be taken against firms illegally marketing to UK consumers that fail to comply with these new regulations after the October deadline. The FCA has also issued examples of good and bad practices to help firms prepare for these new marketing rules. Overall, this should help to strengthen the protection of UK consumers from the risks posed by investing in cryptoassets.