ChainCatcher news, according to Finance Magnates, the UK's Financial Conduct Authority (FCA) defended its "overly strict" approach to the registration of cryptocurrency companies, stating that strong standards are crucial for establishing a sustainable and trustworthy digital asset industry.Val Smith, the FCA's Director of Payments and Digital Assets, responded today in a statement to criticisms that the regulator's stringent requirements could stifle innovation in the crypto industry and that the registration threshold is "too high." Smith warned, "Innovations built quickly on unsafe, unregulated, and untrustworthy foundations are like houses built on sand—likely to collapse. Instead, we want to work closely with the government, industry, and partners in other jurisdictions to develop a crypto industry built on reliable, solid foundations."The FCA has come under scrutiny for the relatively low number of cryptocurrency companies registered under the UK's Money Laundering Regulations (MLR). Some industry observers believe that the regulator's standards may be too high and could jeopardize the UK's position as a global financial leader. Smith countered these claims, emphasizing that the FCA never directly rejects applications and takes the risks of financial crime seriously. She mentioned concerns regarding terrorism, organized crime, sanctions evasion, and human trafficking.

ChainCatcher news, according to the Financial Times, the UK's Financial Conduct Authority (FCA) announced on September 10 that it has charged 45-year-old London resident Olumide Osunkoya with illegally operating multiple cryptocurrency ATMs that are not registered with the regulatory agency. The FCA revealed that the ATMs operated by Osunkoya processed £2.6 million worth of cryptocurrency transactions between December 2021 and September 2023, with these ATMs located in multiple sites.The FCA stated that Osunkoya was a director of Gidiplus Ltd, whose registration application was rejected by the regulatory agency in 2021. Subsequently, Osunkoya began conducting related activities independently.

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.

ChainCatcher news, the UK's Financial Conduct Authority (FCA) has issued a statement warning all companies promoting crypto assets to UK consumers, including overseas firms, that they must comply with the UK's financial promotion regime. However, many crypto companies have refused to cooperate with the FCA, with only 24 out of more than 150 companies responding to a survey. The FCA stated that this raises serious concerns about the readiness of unregistered companies to comply with the new regime. Strong action will be taken if any companies are found to be violating the regime by promoting crypto assets.Previously, the FCA sent letters to companies marketing crypto assets to UK customers, requiring them to comply with the upcoming financial promotion regime, or face criminal charges, which could result in up to 2 years in prison, unlimited fines, or both. The FCA's order takes effect from October 8, which includes overseas companies selling their products to UK customers.

ChainCatcher news, according to Bloomberg, the UK's Financial Conduct Authority (FCA) stated that some new regulations on crypto marketing can be postponed until 2024, given the need to give crypto companies more time to change their marketing processes, but the core content will still be implemented on October 8 of this year.This means that starting from October 8, cryptocurrency services will be classified as a high-risk investment category in UK marketing materials, and all platforms must display risk warnings to UK customers.

ChainCatcher news, the UK's Financial Conduct Authority (FCA) requires UK virtual asset service providers (VASP) to comply with the FATF travel rule starting September 1, collecting, verifying, and sharing information related to domestic and cross-jurisdictional transactions.The FCA also requires UK cryptocurrency companies to regularly review the implementation of the travel rule in other jurisdictions and adjust their business processes as appropriate. When sending cryptocurrency to jurisdictions without travel rules, if the necessary information cannot be obtained, crypto asset businesses must still collect and verify information in accordance with anti-money laundering regulations (MLR) and should store that information before conducting the crypto asset transfer.The travel rule aims to enhance the transparency of crypto asset transfers, advancing global anti-money laundering (AML) and counter-terrorism financing (CTF) efforts by helping crypto asset businesses detect suspicious transactions and conduct effective sanctions screening.

ChainCatcher news, the UK's Financial Conduct Authority (FCA) has released guidelines on financial promotions on social media, which includes a section on non-compliant crypto memes.The FCA stated, "We have observed that memes and other similar communications are circulating on social media, and users often do not realize that this content is subject to our rules. Memes that are considered to promote crypto assets may need to include disclaimers to comply with advertising regulations. Violating the financial promotion rules for crypto memes could result in unlimited fines and up to two years in prison."

ChainCatcher news, the UK's Financial Conduct Authority (FCA) has stated that cryptocurrency companies marketing to UK consumers must prepare for the financial promotion regime. All cryptocurrency companies marketing to UK consumers, including those based overseas, will soon need to comply with the UK's new financial promotion regime. The UK government is expected to adjust the financial promotion regime later this year, and any violations by crypto companies could result in up to two years of imprisonment. (Reuters)