Saturday, November 23, 2024

Zumo First to Integrate Tech Requirements of FCA’s New Financial Promotion Regime for Crypto Assets

Author: CoinSense

Digital asset-as-a-service platform Zumo has become the first cryptocurrency platform to integrate the financial promotions technical flow design laid out by the Financial Conduct Authority (FCA).

In June, the FCA published rules on financial promotions for cryptoassets, which will have effect from Oct. 8, aiming to reduce and prevent harm to consumers from investing in crypto assets that do not match their risk appetite.

In compliance with the rules, the UK-based digital assets firm Zumo announced Thursday that the company has implemented its financial promotions technical flow design, which has been deemed appropriate by the regulator.

The company noted that the early compliance shows Zumo’s “unwavering commitment” toward regulatory alignment and user protection.

“The rigorous adherence to regulatory frameworks is not just about compliance but is a testament to our commitment to be the trusted and sustainable partner for digital assets, ensuring the safety and the integrity of the digital asset industry,” Nick Jones, CEO of Zumo noted.

Zumo further said that its financial promotions technical flow is available via the company’s B2B API, aimed at assisting unregistered firms to remain compliant with the requirements set by the FCA.

New FCA Regulation

The new rule by the regulatory authority mandates enhanced consumer protection measures, ensuring user’s confidence and security at a volatile time when many crypto players have paused their UK operations.

Last week, the FCA expressed its frustration at the lack of response from many unregistered crypto firms. It issued a “final warning” for digital asset firms marketing to UK customers to comply with the regime.

Michael Johnson, chief of compliance at Zumo said that Zumo not only navigate the deadline but surpassed the standard for other industry players. Clearing the new financial promotional landscape, the company has shown seamless user experience and improved safety protocols.

“Our early compliance demonstrates not just our technical and ethical rigor but underscores our commitment to leading the industry in transparency, innovation and consumer protection.”

Digital asset-as-a-service platform Zumo has become the first cryptocurrency platform to integrate the financial promotions technical flow design laid out by the Financial Conduct Authority (FCA).

In June, the FCA published rules on financial promotions for cryptoassets, which will have effect from Oct. 8, aiming to reduce and prevent harm to consumers from investing in crypto assets that do not match their risk appetite.

In compliance with the rules, the UK-based digital assets firm Zumo announced Thursday that the company has implemented its financial promotions technical flow design, which has been deemed appropriate by the regulator.

The company noted that the early compliance shows Zumo’s “unwavering commitment” toward regulatory alignment and user protection.

“The rigorous adherence to regulatory frameworks is not just about compliance but is a testament to our commitment to be the trusted and sustainable partner for digital assets, ensuring the safety and the integrity of the digital asset industry,” Nick Jones, CEO of Zumo noted.

Zumo further said that its financial promotions technical flow is available via the company’s B2B API, aimed at assisting unregistered firms to remain compliant with the requirements set by the FCA.

New FCA Regulation

The new rule by the regulatory authority mandates enhanced consumer protection measures, ensuring user’s confidence and security at a volatile time when many crypto players have paused their UK operations.

Last week, the FCA expressed its frustration at the lack of response from many unregistered crypto firms. It issued a “final warning” for digital asset firms marketing to UK customers to comply with the regime.

Michael Johnson, chief of compliance at Zumo said that Zumo not only navigate the deadline but surpassed the standard for other industry players. Clearing the new financial promotional landscape, the company has shown seamless user experience and improved safety protocols.

“Our early compliance demonstrates not just our technical and ethical rigor but underscores our commitment to leading the industry in transparency, innovation and consumer protection.”