FCA Issues 146 Alerts on First Day of New Crypto Marketing Regime, KuCoin and Huobi Added to Its Warning List

The UK's Financial Conduct Authority (FCA) has issued 146 alerts about cryptoasset promotions on the first day of the new regime. Well-known cryptocurrency exchanges KuCoin and Huobi (now HTX​) have also been added to the Warning List.

"We expect businesses including social media platforms, app stores, search engines, domain name registrars and payments firms to consider the alerts we have issued and play their part in protecting UK consumers from illegal promotions," according to FCA's latest announcement.

The regulator also warns customers to review the Warning List before making any investment in crypto, so they will be able to choose more secure partners.

Since 8 October 2023, firms wishing to promote cryptoassets in the UK must, by law, be authorised or registered by the FCA, or have their marketing approved by an authorised firm. Under FCA rules, promotions must also be clear, fair and not misleading, labelled with prominent risk warnings and must not inappropriately incentivise people to invest. These changes bring cryptoassets in line with other high-risk investments.

The financial promotion regime applies to all firms marketing cryptoassets to UK consumers, regardless of whether the firm is based overseas or what technology is used to make the promotion.

FCA has been warning firms since this February to get ready for the rule changes. At the end of September, the regulator issued reminders about the upcoming deadline, noting that numerous firms had yet to comply with the new regulations.

"Anyone who continues promoting cryptoassets to UK customers past the October deadline without complying with the rules, may be committing a criminal offence punishable by an unlimited fine and/or up to 2 years imprisonment", the FCA warned.