Advertising regulations are similar, but different by country. Then if you mix in that there are different regulations by industry or vertical. Then there are relatively new industries that are picked up by existing regulators. That is what we are talking about here today: Cryptocurrencies and blockchain assets.
That "Warning"s are now over and action is being taken!
Building on previous updates, notices and existing legislation; on October 8, 2023, the Financial Conduct Authority (FCA) introduced new rules governing the marketing of crypto assets in the UK. The rules are designed to protect consumers from misleading and unfair promotions and bring stricter legal sanctions.
In the first 24 hours of the new regime, the FCA issued 146 alerts to firms that were not complying with the rules.
The most common issues included:
The FCA has warned consumers to be wary of any crypto marketing promotion that does not include clear risk warnings or that makes promises of guaranteed returns. Consumers should also check the FCA's Warning List before investing in any crypto asset to make sure that the firm they are dealing with is authorised.
The FCA's new crypto marketing rules are a welcome step forward in protecting consumers from scams and other risks in our opinion. However, it is important to note that crypto assets remain a high-risk investment, and consumers should only invest what they can afford to lose.
In the FCA’s own words: “In the case of non-compliance, we will take robust action to remove illegal content to protect consumers.” Coming out of the blocks fast and effectively putting 146 organisations on final notice is a strong move.
Other industries have seen the need for pre-approval of all marketing and comms from a regulator. This alongside legal action and fines have shown to restrict and seriously limit others in the past from their potential let us alone brand, and reputational damage.
Unlimited fines and imprisonment are real world outcomes now for not planning and executing legally compliant promotions.
Monitoring your own marketing, your clients marketing or being able to audit a client’s position is essential to ensure all the rules are being followed or be able to show they are being checked and improved. Talk to the RippleXn team for a demo and help you setup your first campaign. Ask about advertising compliance, and contractual statement checking.