UK Regulator Outlines Effective Compliance Strategies for Crypto Firms
Previously, crypto firms around the world were unaccustomed to regulations. After new rules, they have have to undertake technological investments to meet compliance requirements. The FCA noted that it recognizes the industry’s challenges in navigating this new regulatory landscape, which includes the concurrent Travel Rule implementation.
The FCA has published examples of effective practices for crypto firms, prioritizing clear, standalone risk warnings for new investors. Optimal design includes dedicated warning pages and easily accessible exit options. Conversely, hindering consumer exit is deemed unacceptable.
Further, the regulator offered personalized guidance to all firms to enhance compliance. It said it expects firms to work proactively to improve standards across the board.