According to the U.K. financial regulator, it sent out 450 consumer notices in the final three months of 2023 targeting businesses that were unlawfully marketing cryptocurrency. It also urged enterprises that grant authorizations to take their obligations seriously.
On October 8, the Financial Conduct Authority’s (FCA) promotion regulations went into effect. It stated in a report on Wednesday that the alerts were sent out between then and December 31.
Crypto firms must register with the authorities to advertise, or have a certified advertising agency approve their adverts.
According to the regulations, businesses must give first-time customers a 24-hour cooling-off period and risk warnings.
“We will be continuing our robust action against firms issuing illegal financial promotions in 2024,” the Financial Conduct Authority stated.
This has forced several businesses, like the biggest cryptocurrency exchange Binance, to halt operations in the United Kingdom. Rebuildingsociety.com, Binance’s promotions approver, was informed it could not authorise cryptocurrency ads, and the exchange has had trouble locating a replacement.