(Bloomberg) -- Carly Nuzbach Lowery, the former chief legal officer of UK crypto custodian Copper Technologies Ltd., has started a new company which will help crypto firms deal with tougher new rules on marketing their services in the UK.
Gateway 21 Ltd., which is seeking approval from the Financial Conduct Authority to arrange investment deals, will be able to approve crypto companies’ financial promotions once it becomes an authorized firm, Lowery said in an interview.
From Oct. 8 the UK’s regime on financial promotions will be expanded to include cryptoasset service providers, meaning businesses offering digital-asset services into the UK will be required to meet higher standards and increased disclosures to consumers. As part of the change, all crypto promotions — including text on websites and apps — will need to be issued or externally approved by a firm that is authorized by the FCA to do so, under a rule known as Section 21.
Earlier this month, the FCA delayed implementation of certain technical aspects of the rules until January following a consultation period with market participants. Some providers including PayPal Holdings Inc. and crypto exchange Luno have said they will cut off sales to some UK-based users once the rules kick in, having been unable to meet the FCA’s required criteria in time. Those who have already registered as a crypto provider under the FCA’s anti-money laundering regulations can approve their own promotions.
Read more: FCA to Delay Some Tighter Crypto Marketing Rules Until 2024
Lowery has remained under the radar since her exit from Copper earlier this year, one of several senior executive departures from the firm chaired by former UK Chancellor of the Exchequer Philip Hammond. Recent departures have included the company’s chief marketing officer Nick Goode.
Lowery, who is funding the company herself, expects Gateway’s authorization to be granted prior to the rules’ enforcement date later this year. The business will operate under her holding company Ashlar Block Ltd., which also houses a consulting arm she established to advise crypto firms on other areas.
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