Carly Nuzbach Lowery, a former employee of crypto custody firm Copper, has launched a company to help UK crypto firms comply with new advertising rules. If it receives approval, Gateway 21 Ltd. will be able to approve marketing content according to the Financial Conduct Authority’s (FCA) new rules for financial promotions.
Lowery, Coppers’ former legal head, left the company along with several key executives and is funding Gateway21 with her own money. Nick Cooper, the company’s chief marketing officer, was the latest high-profile executive to leave in August.
FSM Bill Gives FCA Power to Police Crypto Marketing
The recently passed Financial Services Markets (FSM) bill gave the FCA powers to implement new rules on crypto promotion. The new rules cover all content used in promotional material, including text on websites and apps. It also bans crypto firms from offering referral bonuses.
Companies wishing to advertise must either already be registered with the regulator or, if they are unregistered, subcontract their marketing to an authorized firm, which Gateway21 aims to become.
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Crypto firms that already meet the UK’s money laundering standards can approve their own marketing. Crypto exchange Luno and fintech PayPal confirmed they will temporarily halt services to UK customers before the new rules take effect on Oct. 8.
FCA Tightens Policies to Protect Cash-Strapped Investors
In July, the FCA voiced concerns over financial promotions that fell short of its standards. The regulator singled out influencers who promote products they may not fully understand.
It has also called on technology companies to protect users from losing funds by heeding these so-called experts. The UK’s cost-of-living crisis led “finfluencers” to promote risky investments, including crypto derivative products.
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Last week, the regulator ordered lenders to remove or amend 400 non-compliant advertisements promoting mortgages. Its measures complement the Bank of England’s decision to maintain the borrowing rate at 5.25% after August inflation beat expectations.
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