Partner Richard Cannon comments on the FCA’s crackdown on crypto marketing in Verdict

In light of the FCA’s crypto marketing regime coming into effect, Partner Richard Cannon comments on how high rates of fraud and financial crime have shaken confidence in the digital assets sector.

Richard’s comments were published in Verdict, 9 October 2023, and can be found here.

“The FCA’s new rules on the marketing of cryptoassets are yet another measure introduced as part of the UK’s crackdown on the ‘wild west’ sector.

“High rates of fraud and financial crime have shaken consumer confidence, and these rules will likely ease concerns around the risks of crypto companies misleading consumers.

“What must be noted, however, is that these rules only extend to the marketing of products and services and will likely do little to help police the sector and protect consumers beyond warning of the potential risks of investing in these currencies.

“Consumers must be aware of the volatility of such currencies, however more must also be done to effectively prevent and prosecute fraud within the crypto industry if the UK is to become a world-leader in the digital assets space.

“Due to the borderless nature of digital assets, with cryptocurrencies able to be marketed, bought and sold across jurisdictions with relative ease, it remains to be seen how the FCA and its counterparts overseas can globally police this sector.”