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.