Crypto firms could be jailed for 2 years for violating UK advertising laws

According to FCA, firms advertising crypto in the UK illegally could face jail time. Firms marketing crypto in any form will need to be regulated by the Financial Conduct Authority(FCA).

Earlier, a new “financial promotions regime” was made by the FCA. On February 6, 2023, the Financial Conduct Authority(FCA) released a statement that if the proposed “financial promotions regime” is approved by the Parliament, all crypto firms could be jailed for 2 years as long as they violate UK advertising laws.

FCA claimed that “Cryptoasset businesses marketing to UK consumers, including firms based overseas, must get ready for this regime…Acting now will help ensure they can continue to legally promote to U.K. consumers. We encourage firms to take all necessary advice as part of their preparations.”

According to the proposed “financial promotions regime”, crypto firms have to either be under the regulation of FCA in order to market crypto or have an exemption under the Financial Promotion Order.

The FCA claimed that “We will take robust action where we see firms promoting crypto assets to UK consumers in breach of the requirements of the financial promotions regime.” According to the regulator, promotions outside of these routes would violate the Financial Services and Markets Act 2000 (FSMA), which carries a criminal punishment of up to two years.

The Crypto market crisis that followed FTX's bankruptcy filing last year raised concerns about the safety of crypto firms. The latest move by the FCA is indicative of growing official distrust of the crypto market in the UK and an increasingly strict level of regulation.