Several crypto firms have decided to suspend services or exit the UK market in recent months due to strict marketing rules from the Financial Conduct Authority (FCA). This could hinder Prime Minister Rishi Sunak’s ambitions for the UK to become a global crypto hub.
Complications caused by the FCA’s marketing rules
The FCA’s marketing rules, including a cooling-off period for first-time investors, have posed complications for crypto companies. Fintech firm Revolut suspended crypto trading for UK businesses, and PayPal temporarily paused crypto purchases in the UK. Other major platforms like Bybit, OKX, and Binance have also reevaluated their strategies in response to the rules.
“Strict marketing rules in the UK are deterring crypto firms and hindering the country’s crypto ambitions. ”
Lack of a comprehensive legal framework could hinder UK’s crypto ambitions
While progress has been made on the regulatory front, such as the UK Treasury’s proposals for future regulation of crypto assets and the introduction of new regulations for supervising the Digital Securities Sandbox, a comprehensive legal framework is still lacking. Without it, the UK may fall behind other regions like MENA, APAC, and the EU in the global crypto landscape.
Read more here at https://www.theblock.co/post/273763/fca-crypto-rules-sunak-uk-web3-hub
