Since the roll out of new crypto marketing rules the FCA has identified three common problems in the way they are promoted.
On October 8, the regulator introduced the new rules with the aim of improving the accuracy of cryptoasset products' marketing.
Since the rules went live, 221 alerts have been issued by the FCA, 146 of which were on the first day,
In the two weeks since then, the regulator has seen three “common issues”, which are:
- Promotions making claims about the safety, security or ease of using cryptoasset services without highlighting the risk involved.
- Unclear risk warnings due to small fonts, hard-to-read colouring or non-prominent positioning.
- Firms failing to provide customers with adequate information on the risks associated with products being promoted.
The FCA has now warned it will take action on firms which are not taking the new regulations seriously, including placing restrictions on firms.
The regulator said: “Even with the new marketing rules, cryptoassets still remain high-risk and largely unregulated. If something goes wrong, it is unlikely people will have access to consumer protections, so should be prepared to lose all their money.”
It advised would-be investors to check the FCA’s warning list before making any investment in crypto.
The FCA said that even with the new marketing rules, cryptoassets still remain high-risk and largely unregulated.
"If something goes wrong, it is unlikely people will have access to consumer protections, so should be prepared to lose all their money," it said.
tara.o'connor@ft.com
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