Signal Cryptoassets brought into UK financial promotions regime in October 2023

Summary

Financial promotion requirements for cryptoassets took effect in October 2023. Cryptoassets now fall within the UK financial promotions regime, so promotions must be fair, clear and not misleading. The report presents this as one of the UK's mitigations against the risks of emerging financial systems. The backdrop is that consumer cryptoassets lack the legal protection of traditional banking, leaving them far more exposed to hacks and bankruptcies. In November 2024 the Treasury then confirmed it would press ahead with plans for a new financial services regulatory regime for cryptoassets. The report holds that without consumer protection, blockchain finance could encourage risk taking and personal liability.