The UK’s Financial Conduct Authority (FCA) recently proposed some strict new rules for how crypto companies can market their products and services to customers. If passed, the regulations would clamp down on misleading hype and unrealistic promises, requiring more transparency and balanced information. According to a release by the FCA, the new rules, which will apply to first-time investors in the UK willing to purchase crypto assets, will require companies to introduce a cooling-off period from October 8, 2023. The FCA has also opened consultations regarding the matter until the 10th of August. New Rules For Firms Promoting Crypto Products Or Services Essentially, the FCA wants to treat cryptocurrencies as high-risk investments as part of its post-Brexit financial strategy revealed in February. In 2022 alone, the FCA forced firms to rectify 8,582 misleading promotions. The regulator is concerned that crypto newbies don’t fully understand the risks of these volatile, unregulated assets. With the value of major cryptocurrencies fluctuating wildly, those promoting crypto must also put in place clear risk warnings and ensure adverts are clear, fair, and not m ..
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