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UK FCA to Prohibit Free NFT and Crypto Airdrops to Promote Investment

The UK Financial Conduct Authority (FCA) will prohibit giving away free non-fungible tokens (NFT) or cryptocurrencies through airdrops to promote investing in digital assets. This is part of the FCA's new marketing rules for crypto, which will take effect on October 8. Under these rules, crypto will be categorized as a "restricted mass market investment" and adverts on crypto will require clear risk warnings. Incentives for the general public to invest in cryptocurrencies will be banned.

According to an FCA official, these free NFTs and airdrops, when used to promote investing in crypto products, could result in consumers buying crypto that they realize "can be problematic later." However, crypto airdrops and NFTs themselves will not be banned, merely promotions involving airdrops. The FCA plans to implement these measures regardless of industry pushback.

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