UK FCA toughens rules for marketing of cryptoassets
The UK’s Financial Conduct Authority (FCA) has introduced new “tough” rules for companies advertising cryptoassets.
FCA toughens rules for advertising cryptoassets
According to the new rules, companies marketing cryptoassets to consumers will have to introduce a “cooling-off period” for first-time investors starting 8 October. Additionally, to make people understand the risks of buying crypto, “refer a friend” bonuses will also be banned.
The rules follow UK government legislation to bring crypto promotions into the regulator’s remit, with the aim of ensuring crypto firms place clear risk warnings to investors without being misleading, and making sure investors have appropriate knowledge and experience to invest in crypto.
“’It is up to people to decide whether they buy crypto. But research shows many regret making a hasty decision. Our rules give people the time and the right risk warnings to make an informed choice,” says Sheldon Mills, executive director, consumers and competition, at FCA.
Mills adds that the FCA is consulting on additional guidance to help the crypto industry “meet our expectations” and companies have until 10 August to respond.
