UK bans free promotional NFTs and crypto airdrops.
Giving away free non-fungible tokens (NFTs) or cryptocurrencies as part of promotions to encourage investment in digital assets will be prohibited under new rules by the U.K. Financial Conduct Authority (FCA). The FCA’s strict regulations will take effect from October 8th, categorizing crypto as a “restricted mass market investment” and requiring clear risk warnings in crypto adverts. Promoting incentives for the public to invest in crypto will also be banned. While crypto airdrops and NFTs themselves will not be prohibited, promotions involving airdrops will be. The FCA chose these rules after receiving feedback from respondents to its consultation last year. The regulator plans to implement these measures regardless of pushback from the industry. The FCA’s focus is on six key areas with the aim of protecting investors and market integrity.