The Financial Conduct Authority (FCA) is actively targeting crypto firms that attempt to evade new regulations on financial promotions by using illegible warning notices.
Since the launch of the new crypto promotion regime 17 days ago, the FCA has issued 221 alerts to firms that are not in compliance and has already restricted an authorized firm—rebuildingsociety.com—from approving cryptoasset financial promotions.
The regulator is now focusing on companies that obscure the risks involved in their promotions, using small fonts, hard-to-read colors, or positioning the warnings in a way that makes them difficult to notice.
“We expect authorized firms approving financial promotions for cryptoasset firms to take their regulatory obligations seriously. Where this is not happening, we will take action,” states the FCA.
Additionally, the regulator is collaborating with businesses such as social media platforms, app stores, search engines, and domain name registrars to remove or block illegal promotions.
“We are also working with payment firms to limit UK consumer exposure to companies issuing illegal promotions. These businesses should consider the alerts we have issued and play their part in protecting UK consumers,” the FCA emphasizes.