The FCA is concerned by the 'lack of engagement' from unregistered crypto firms to its incoming financial promotions regime.
"Despite our best efforts only 24 firms responded to a survey that was sent to over 150 firms," the regulator said, adding it harbored the most concern for overseas crypto asset firms who have UK customers.
All crypto asset firms marketing to UK consumers, including firms based overseas, will need to comply with the UKThe new rules apply for crypto promotions across a wide range of media forms, from websites and social media outlets, to online advertising. To stay on the right side of the guidelines, unregistered crypto asset firms will need to ensure promotions are approved by an FCA authorized person.
The regulator said unregistered crypto asset firms who fail to comply are likely to be in breach of section 21 of the UK's Financial Services and Markets Act 2000. This would be a criminal offence, punishable by up to two years imprisonment, an unlimited fine, or both.The regulator also addressed its expectations for businesses that support unregistered crypto asset firms, including social media platforms, app stores, search engines and payments firms.