Response to FCA on Cryptoasset Financial Promotions

In this episode, we present an audio version of Bitcoin Policy UK’s response to the FCA’s consultation  GC23/1 || PS23/6 on cryptoasset financial promotions, originally published on 5 August 2023.

You’ll hear a clear explanation of why the proposed rules risk misunderstanding Bitcoin, misclassifying it, and pushing consumers into harm’s way, the opposite of what good regulation should achieve. 

🔍 What this episode covers

In this spoken paper, we walk through the key arguments and evidence submitted to the FCA, including:

🔹 The FCA’s core mistake: treating all “cryptoassets” as the same

The response explains why Bitcoin is fundamentally different - a protocol, a network, and a digital commodity with no issuer - and why the FCA’s “restricted mass market investment” label is logically and practically flawed.

🔹 Why miscategorising Bitcoin creates enforcement, logic, and consumer-protection problems

From 24/7 global liquidity to permissionless use, the paper explains why Bitcoin simply doesn’t fit the Restricted Mass Market Investment (RMMI) framework.

🔹 The unintended consequences of the new rules

Feedback from UK firms highlights how poorly-designed regulation could:

• Drive consumers toward offshore, unregulated providers
• Increase customer harm
• Undermine UK competitiveness
• Burden compliant firms while bad actors flourish

🔹 Why the current regulatory approach risks becoming paternalistic

The FCA should protect consumers from misleading promotions, not decide what adults should invest in.

🔹 Why the FCA must distinguish between staking, borrowing/lending, and speculative yield schemes

Lumping everything together obscures risks, confuses consumers, and creates regulatory blind spots.

🏛️ Key themes

• Bitcoin ≠ crypto.
• Regulation should focus on behaviour of firms, not assets themselves.
• Poorly conceived rules can be harmful, unenforceable, and counterproductive.
• Differentiation, clarity, and proportionality are essential, particularly for an asset as unique as Bitcoin.

📄 Read the full written paper here:
👉  Response to FCA on Cryptoasset Financial Promotions

To find out more about Bitcoin Policy UK's work and how you can get involved, visit:

https://bitcoinpolicy.uk/