New UK crypto laws pose stiff challenge for most firms, cautions Delphi Labs counsel

cyptouser5 months agoSpot Exchanges171

New UK crypto laws pose stiff challenge for most firms, cautions Delphi Labs counsel

Delphi Labs general counsel Gabriel Shapiro warned that most crypto firms will struggle to comply with the new financial promotions regulations by the U.K. Financial Conduct Authority (FCA).

In a Sept. 11 post on X (formerly Twitter), Shapiro noted that strict compliance with the regulations may be feasible only for centralized exchanges and a select few established DeFi projects. However, he emphasized that even these entities could face challenges meeting the compliance requirements due to time constraints.

Shapiro further highlighted the financial challenges that might come with compliance. According to him, each project could require a minimum of $500,000 for legal counsel and development. He pointed out that covering these costs could necessitate reallocating funds from other areas.

While the crypto attorney conceded that the regulations would help to protect people “investing in coins,” he pointed out that the laws were incompatible with the industry because “most of the tech is peer to peer” and “many participants in the industry are not intermediaries or custodians.”

The new regulation

The U.K.’s FCA implemented a revised financial promotions regime set to take effect in October, impacting the marketing of cryptocurrency assets. These updated regulations impose stringent guidelines on how crypto firms can promote their services to residents of the United Kingdom. Notably, one consequence of these regulations is prohibiting crypto referral programs, among other restrictions.

Meanwhile, the law established various legitimate avenues for companies to market crypto assets to consumers in the United Kingdom. These pathways encompass communication by an authorized individual, communication by an unauthorized individual with approval from an authorized person, or contact by a company registered under the FCA Money Laundering Regulations (MLRs).

These new regulations have forced several crypto firms, including Luno and PayPal, to have a changed approach towards their services in the country. Due to the upcoming legislation, the two firms would restrict some of their services within the jurisdiction starting in October.

The content on this website comes from the Internet. Due to the inconvenience of proofreading the authenticity and accuracy of the copyright or content of some content, it may be temporarily impossible to confirm the authenticity and accuracy of the copyright or content. For copyright issues or other issues caused by this, please Call or email this site. It will be deleted or changed immediately after verification.

related articles

Craig Wright unable to provide sufficient evidence of funds in latest Satoshi court case

In the latest legal chapter of the ongoing Satoshi Nakamoto identity saga, self-proclaimed Bitcoin c...

US exodus as Revolut now ‘suspends’ crypto access in country amid regulatory uncertainty

Amid the evolving landscape of crypto regulation in the United States, financial technology company...

Protect against new AI attack vector using keyboard sounds to guess passwords over Zoom

Protect against new AI attack vector using keyboard sounds to guess passwords over Zoom

A recent research paper from Durham University in the UK revealed a powerful AI-driven attack that c...

Digital Currency Group subsidiary Luno to pause certain UK services, citing forthcoming regulations

Luna, a subsidiary of Digital Currency Group (DCG), will soon pause certain services in th...

Binance linked to money laundering scheme in Belgian extradition case: Bloomberg

Binance linked to money laundering scheme in Belgian extradition case: Bloomberg

Belgian authorities are seeking the extradition of a London-based fintech professional, Caio Marches...

Rising stock of regulated crypto companies as OANDA acquires Coinpass

Trading platform OANDA has announced the acquisition of a majority stake in Coinpass Limit...