As of the 8th of October 2023, the United Kingdom shall include qualifying cryptoassets within the scope of the existing Financial Promotions Regime. By defining cryptoassets as “Restricted Mass Market Investments”, these restrictions are applied with the overall aim of ensuring financial promotions remain fair, clear, and not misleading. Therefore, those marketing cryptoassets to the UK (including those not based in the UK) are required to comply with this new regime.
Once enforced, cryptoasset promotions can only be made:
- Through an Authorised Person, or
- Through an unauthorised person approved by an Authorised Person, or
- Through a Cryptoasset Business registered with the Financial Conduct Authority (FCA), or
- If it complies with the exemption conditions in the UK Financial Services and Markets Act of 2000 (Financial Promotion) Order.
Breach of this Regime is deemed to be a criminal offence punishable by two years imprisonment and/or an unlimited fine.
Maltese licensed Virtual Financial Assets (VFA) Providers marketing or intending to market cryptoassets to UK consumers will need to adhere to the above regime to ensure legal compliance.
This notice was written by Ms Jodie Arpa.
For more information or if you have any questions, please feel free to contact Dr Ian Gauci or Dr Cherise Abela Grech.