UK Tightens Regulations for Crypto Advertising
The Financial Conduct Authority (FCA) has revealed new regulations that will come into effect on October 8, imposing stricter rules on crypto service advertisers in the UK.
As part of these measures, crypto companies will be required to implement a “cooling-off period” for first-time investors. Additionally, the FCA has banned “refer a friend” bonuses in the sector, aiming to ensure that individuals investing in cryptocurrencies fully comprehend the associated risks.
Sheldon Mills, the executive director of consumers and competition, emphasized that the FCA’s regulations allow individuals to make informed decisions by providing adequate time and appropriate risk warnings.
Mills further stated that the crypto industry should prepare for this significant change, with the FCA developing additional guidance to assist companies in meeting expectations.
This development coincides with an extensive regulatory crackdown in the United States, as evidenced by the US Securities and Exchange Commission’s recent lawsuits against Binance and Coinbase.
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In August 2022, the FCA implemented stricter regulations to combat misleading advertisements related to high-risk investment products, although crypto was not included at that time.
The FCA’s current announcement emphasizes the alignment between the newly introduced measures for crypto advertisements and the previously imposed restrictions on advertising high-risk investments.
Furthermore, the FCA is seeking input from stakeholders and is conducting consultations on supplementary guidance outlining the requirements for crypto advertisers. Interested parties have until August 10 to contribute to this process.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
