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FCA warns U.K. crypto companies to expect new restrictions on financial promotions

UK FCA

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TL;DR

  • The Financial Conduct Authority declared that regulations for investing in cryptocurrencies will reflect the guidelines used to govern other high-risk investments.
  • U.K. customers will be given 24 hours to reconsider hasty purchases before finalizing any transactions.

On Monday, U.K.-based cryptocurrency companies were strongly urged to be ready for new regulations concerning financial promotions; the Financial Conduct Authority (FCA) advised that any violations could result in a two-year jail sentence.

The financial regulator announced that the regulations on cryptocurrencies would resemble those of other high-risk investments, ensuring transparency and fairness in marketing. Additionally, customers are given 24 hours to reconsider hasty purchases before finalizing any transactions.

To protect U.K. consumers, the FCA has announced a new regulatory regime that applies to all firms marketing crypto assets – regardless of where they are headquartered or what technologies they use. Acting promptly will ensure these companies can continue promoting their services legally. Last year, regulations were proposed for crypto sector advertising, and now it’s been confirmed by The Treasury that even those registered solely for money laundering purposes may be authorized to launch campaigns in the U.K.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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