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Registered UK Crypto Firms Can Approve Their Own Ads, Lawmakers Decide

The law on promotions is set to come into effect around four months from now if there are no objections, the finance ministry has said.

Updated May 3, 2023, 5:41 p.m. Published May 3, 2023, 3:18 p.m.
UK Parliament Building and Big Ben, London (Ugur Akdemir/Unsplash)
UK Parliament Building and Big Ben, London (Ugur Akdemir/Unsplash)

U.K. lawmakers voted in favor of a highly anticipated amendment to ease advertisement approvals for crypto firms on Wednesday, meaning it is now on track to become law.

The amendment would allow crypto companies that are already registered with the country’s financial watchdog under its anti-money laundering regime to be able to approve their own ads, something they would otherwise not be able to do. This exemption will only apply until new crypto laws come into force, and can still face opposition until it officially comes into force.

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The House of Lords, Parliament's second chamber, agreed to move the amendment forward in a committee meeting on Tuesday before it was voted on by the primary chamber, the House of Commons, on Wednesday.

The rule will allow the Financial Conduct Authority (FCA) to regulate crypto companies under the existing promotions law, and should help safeguard consumers from misleading crypto promotions, the Treasury, the government's finance arm, tweeted in March.

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The amendment should come into effect around four months from now, to allow time for crypto companies to adjust, the Treasury has said.

The Financial Services and Markets Bill going through Parliament seeks to regulate crypto as financial instruments, and will give regulators more power over the sector, including for regulating promotions. The government is also consulting on broader rules for the crypto sector.

Read more: UK Crypto Promotions Laws Hoped to Be in Place by Late 2023

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