Zumo leads UK Financial Conduct Authority (FCA) crypto regulation compliance, protecting cryptocurrency investors.
The Financial Conduct Authority’s (FCA) new financial promotions regime for cryptoasset firms, which go into effect on October 8, 2023, has required digital asset platforms to integrate tech-based requirements. Zumo, a UK-based DAS platform, is the first DAS platform to do so in a fintech landscape that is rapidly evolving.
The FCA approved Zumo’s technical flow design for financial promotions, which is currently fully operational. Zumo’s own dedication to establishing the highest standards for consumer safety and regulatory alignment is demonstrated by this early compliance.
The FCA’s new policy aims to protect customers from harm by requiring stronger consumer protection measures and prohibiting them from investing in cryptoassets that exceed their risk tolerance. It was clarified that, although the decision to purchase cryptocurrency is entirely up to the consumer, they should have fair and accurate information at their disposal to aid in their decision-making.
Zumo clarified that, in light of the unstable environment in which large players have suspended their UK activities, it has not integrated this development to assure consumer confidence and security.
The roughly 150 unregistered cryptocurrency businesses that have clients in the UK have raised concerns with the FCA recently, saying that many of them have not even replied to the regulator. It clarified that through posting statements on the FCA website, corresponding with different firms, and participating in many industry discussions, it has alerted companies marketing cryptoassets to UK consumers to the need to prepare for the new environment.
As of September 21, just 24 out of the more than 150 companies that the FCA attempted to reach out to had a response.
Attempting to become the industry standard-setter for others
“The rigorous adherence to regulatory frameworks is not just about compliance but is a testament to our commitment to being the trusted and sustainable partner for digital assets, ensuring the safety and the integrity of the digital asset industry,” said Nick Jones, CEO of Zumo, when speaking about the significance of meeting the FCA’s regulatory standards.
According to Zumo, other fintech and cryptocurrency companies navigating the new financial promotional landscape should take note of its preparedness. Through the business’s B2B API, Zumo’s technical flow for financial promotions is now also accessible, assisting unregistered businesses in continuing to comply after October 8, 2023.
“We didn’t just beat the deadline; we are striving to set the standard for others in the industry,” stated Michael Johnson, Zumo’s head of compliance, in explaining how the platform tackled the new regulations.
“Our early compliance shows our dedication to leading the industry in transparency, innovation, and consumer protection, as well as our technological and ethical rigor. Since some operators are stopping operations in the UK, many of their customers who own cryptocurrency will not be able to purchase or trade starting on October 8.
