The UK Financial Conduct Authority issues an alert on common questions regarding cryptocurrency marketing

ChainCatcher news, the UK's Financial Conduct Authority (FCA) has issued a warning regarding common issues in cryptocurrency marketing. The FCA stated that since October 8, it has identified three common issues with financial promotions of crypto assets, including (1) promotions claiming "safety," "security," or the convenience of using crypto asset services without emphasizing the risks involved; (2) risk warnings that are not sufficiently prominent due to small font, hard-to-read colors, or inconspicuous placement; (3) companies failing to provide customers with adequate information about the risks associated with the specific products being promoted. The FCA expects authorized firms approving financial promotions for crypto asset companies to take their regulatory obligations seriously, or else it will take action and has already imposed restrictions on one authorized firm, prohibiting it from approving financial promotions for crypto assets. The FCA stated that it is working with businesses such as social media platforms, app stores, search engines, and domain registrars to remove or block illegal promotions. We are also collaborating with payment companies to limit UK consumers' exposure to companies that publish illegal promotional activities. Furthermore, the FCA will continue to identify and take action against companies illegally marketing crypto assets to UK consumers.