Zumo, a digital asset-as-a-service platform, has become the first cryptocurrency platform to adopt the financial promotions technical flow design specified by the Financial Conduct Authority (FCA).
The FCA introduced regulations on financial promotions for cryptoassets in June, which will take effect from October 8. The objective is to protect consumers from investing in crypto assets that don’t match their risk appetite.
Demonstrating compliance with these rules, UK-based digital assets firm Zumo announced on Thursday the successful implementation of its financial promotions technical flow design, which has been approved by the regulator.
Zumo emphasized that this early compliance reflects the company’s commitment to regulatory alignment and user protection.
Nick Jones, CEO of Zumo, stated, “Adhering to regulatory frameworks demonstrates our commitment to being a trusted and sustainable partner in the digital asset industry, safeguarding its integrity and safety.”
Zumo also noted that its financial promotions technical flow is available through the company’s B2B API, aimed at assisting unregistered firms in meeting FCA requirements.
New FCA Regulation
The FCA’s new regulation promotes enhanced consumer protection measures, ensuring user confidence and security, particularly during a time when many crypto players have suspended operations in the UK.
Last week, the FCA expressed frustration at the lack of response from numerous unregistered crypto firms. It issued a “final warning” for digital asset firms marketing to UK customers to comply with the regulatory regime.
Michael Johnson, Chief of Compliance at Zumo, highlighted the company’s ability not only to meet the deadline but also to surpass the standard set for other industry players. By adapting to the new financial promotional landscape, Zumo has delivered a seamless user experience and improved safety protocols.
“Our early compliance demonstrates not only our technical and ethical rigor but also our commitment to leading the industry in transparency, innovation, and consumer protection.”