The UK’s Financial Conduct Authority (FCA) has taken stricter steps to regulate cryptocurrency companies.
In October, it issued warnings to many platforms that were offering services without the required approval. Among those named were Elite Bit Markets, Nexure Gainbit, Plux Crypto, and HTX.
The FCA also filed a case against HTX for promoting crypto services to UK residents without proper registration. A spokesperson confirmed that the regulator will act when companies fail to comply with its rules.
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To operate or advertise in the UK, crypto businesses must be officially registered with the FCA under anti-money laundering laws.
They must also comply with rules introduced in 2023, which cover how financial products, including cryptocurrencies, are promoted to the public.
These advertising rules are designed to protect consumers. They require firms to clearly warn users about the risks of investing in digital assets. Companies must also include educational content and identity checks as part of their sign-up process.
The FCA classifies financial products into three categories based on risk. The lowest-risk products, such as public company shares, can be promoted without limits.
Most cryptocurrencies fall into the middle category, which allows promotion but under stricter conditions.
Recently, Poland’s parliament approved a new crypto-focused bill, known as Bill 1424. What does the bill cover? Read the full story.
