The FCA says it has discovered “a number of situations” of cryptoasset agency failing to satisfy its advertising requirements.
Corporations want to enhance compliance with the advertising guidelines to keep away from FCA motion, it mentioned.
In a assessment of the sector it not too long ago took over regulating, the FCA mentioned its guidelines weren’t all the time being adopted.
It not too long ago reviewed a number of crypto companies’ compliance with monetary promotion guidelines designed to assist folks higher perceive the dangers of investing in crypto.
The assessment analysed how companies have been implementing personalised danger warnings, the 24-hour cooling off interval, consumer categorisation and appropriateness assessments.
It discovered some examples of companies demonstrating good observe, which it has shared to assist companies enhance their compliance with the foundations.
However it additionally discovered “a number of situations” the place companies didn’t meet the required requirements, it mentioned.
The place it has recognized issues, it has labored with particular person companies to assist them make vital enhancements however extra work must be achieved to enhance compliance, it mentioned.
In its assessment it mentioned: “We’ve got seen companies counting on trade comparisons to benchmark what is appropriate. Given the degrees of poor observe available in the market, companies shouldn’t be doing this. As a substitute, we anticipate companies to have interaction with us on to drive up requirements throughout the sector.
“All companies speaking or approving monetary promotions should make certain they’ve sturdy methods and controls for compliance in place. If companies don’t enhance, we’ll act. We may also take into account companies’ compliance with regulatory necessities, together with the monetary promotions regime, as a part of any software to be authorised beneath the longer term monetary providers regulatory regime for cryptoassets.”
The regulator has urged companies to learn its ‘good and poor observe’ examples and beforehand revealed steerage GC23/1.