FCA Official: Free Promotional NFTs, Cryptocurrency Airdrops Will Be Banned

Matthew Long, head of payments and digital assets at the U.K. Financial Conduct Authority (FCA), said that free NFTs or cryptocurrencies given away through airdrops to promote investment in digital assets will be banned when the U.K.'s cryptocurrency financial promotions rules come into effect on Oct. 8, CoinDesk reported. When used to make investments in crypto products, they may lead consumers to buy cryptocurrencies they realize "could be problematic later. But cryptocurrency airdrops and NFTs are not banned per se, only promotions involving airdrops. In addition, Matthew Long said the FCA is focusing on six key areas, including addressing fraud and cross-border risks mentioned in a recent report issued by international securities regulator IOSCO to address investor protection and market integrity issues.