Zumo, a digital asset-as-a-service platform, has achieved the distinction of being the first cryptocurrency platform to adopt the financial promotions technical flow design outlined by the Financial Conduct Authority (FCA).
Earlier in June, the FCA released guidelines concerning financial promotions for cryptoassets, set to be enforced from Oct. 8. These regulations aim to minimize the potential risks to consumers from investing in crypto assets that aren’t in line with their risk tolerance.
Adhering to these guidelines, Zumo, a UK-based digital asset company, announced on Thursday its successful integration of the financial promotions technical flow, receiving the regulatory body’s seal of approval.
Zumo highlighted their timely compliance as a reflection of their “steadfast commitment” to aligning with regulatory standards and safeguarding their users.
Nick Jones, Zumo’s CEO, stated, “Strictly following regulatory guidelines isn’t merely about adhering to rules. It underscores our dedication to being a reliable and enduring partner in the digital asset space, prioritizing the security and integrity of the industry.”
Furthermore, Zumo pointed out that their financial promotions technical flow is accessible through their B2B API. This initiative is designed to support firms that aren’t registered, helping them to meet the FCA’s stipulated requirements.
New FCA Regulation
The regulatory body’s latest guideline calls for heightened measures to protect consumers, fostering trust and safety during a tumultuous period wherein several cryptocurrency entities have halted their operations in the UK.
Recently, the FCA voiced its concerns over the inadequate action from numerous unregistered crypto firms. In a stern move, it issued a “final warning” urging digital asset companies targeting UK consumers to align with its regulatory framework.
Michael Johnson, Zumo’s Chief of Compliance, remarked on the company’s proactive approach, suggesting that Zumo not only met the deadline but also set a higher benchmark for their peers in the industry. By navigating the newly established financial promotional guidelines, Zumo has successfully delivered an uninterrupted user experience coupled with enhanced security measures.
Johnson emphasized, “Our prompt adherence is a reflection of our meticulous technical and ethical standards. More importantly, it echoes our dedication to steering the industry with clarity, pioneering innovations, and unwavering focus on safeguarding consumers.”