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Commenting on the Financial Conduct Authority's new advertising rules announced today [8 June], Su Carpenter, Director of Operations at CryptoUK, the trade body for the UK crypto industry, said: "We encourage appropriate consumer protection and the implementation of measures to ensure the highest standards of communications in financial promotions. Such measures ensure that consumers are fully aware of any associated risks before transacting, and are critical to the success of our industry and the safety of its customers.
“However, we do ask that any regulation also empowers consumers to invest and transact in cryptoassets safely and confidently, whilst keeping in mind that there are multiple additional use cases for this technology outside of just investments. These would also be subject to any restrictions on providers promoting their technology and services.
“The requirement that all approvers of financial promotions have an understanding of cryptoassets and have permission to act as an approver also has the potential to introduce an overly restrictive regime, based on the incredibly small number of organisations which would meet that criteria for approver status.
“We have concerns that the policy proposed may bring into play disproportionately restrictive barriers and create an unbalanced environment There is a risk that this solution will both unfairly concentrate market power for those firms which are already authorised and potentially encourage unauthorised firms to operate from outside of the UK, creating a competitive disadvantage for UK-based organisations and also potentially undermining consumer safeguards.
“Additionally, in relation to the cooling off period, the principle we agree with, but question the length of the duration being proposed (as this is not aligned with other jurisdictions) and would welcome evidence based findings on the rationale behind this proposal.
“We want to encourage a competitive and equal environment for the cryptoasset industry to continue to grow and innovate safely, whilst operating within appropriate safeguards and offering education and information to all consumers and will be working with our members to respond to the consultation with recommendations to help ensure this outcome."
