Financial Promotions Order

In January 2022, HM Treasury confirmed its plans to bring crypto promotions within the scope of the UK financial promotions regime. The plans will capture currently unregulated cryptoassets such as Bitcoin and Ether and put them in a new classification of qualifying cryptoassets. Any firm that seeks to promote the sale of these tokens will need to be an approved S21 provider. The concern here is that in order to do so, a firm must be authorised, which with no specific regulatory regime for cryptoassets makes this hard. It is also difficult as the competency and expertise element required to be able to sign off on a promotion makes this very difficult and expensive. 

There has been a strong industry push to prevent this rule from coming in, however there is a similar delay as the FCA are unable to apply this regime until HMT lay before parliament their proposal to create the category of a qualifying cryptoasset.

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