Why unlicensed firms are a problem
When a crypto firm isn't licensed by the FCA, users who trade on its platform aren't covered by UK investor protection rules. That means no access to the Financial Ombudsman Service if something goes wrong, and no compensation if the firm collapses. The FCA warned that fans, especially younger ones, may not understand the difference between a regulated and unregulated platform. A club's endorsement can make an unlicensed firm appear trustworthy, which is exactly the outcome the regulator wants to prevent.
What clubs need to check
The FCA expects clubs to confirm that any crypto firm they work with is on the regulator's list of authorized firms. Clubs that fail to do so could be seen as facilitating unauthorized activity. The warning did not spell out specific punishments, but the FCA has powers to issue fines or require changes to marketing materials. For now, the regulator is asking clubs
