Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
The United Kingdom Financial Conduct Authority (FCA) announced it will extend the deadline for cryptocurrency firms to implement strict marketing rules designed to protect consumers.
According to an official release, the core rules will take effect on October 8, 2023. However, measures requiring greater technical development, such as the 24-hour cooling-off period, can be implemented by January 8, 2024.
FCA Extends Deadline for New Crypto Rules
The FCA has classified cryptocurrencies as high-risk investments and warned investors to be prepared to lose all their money if they purchase such assets. The regulator has mandated that crypto marketing materials must be clear and include risk warnings to protect UK investors.
An authorized firm must approve all public promotions, which must not be misleading or inappropriately incentivize people to invest. These rules apply to all global firms and aim to strengthen consumer protection against crypto asset risks.
Crypto companies that fail to implement the rules after the October 8 deadline and continue to promote digital assets to UK users will face penalties including unlimited fines or up to two years in imprisonment.
Related Posts
Lucy Castledine, Director of Consumer Investments, said: “From this October, crypto firms must market to UK consumers clearly, fairly, and honestly. And they must provide risk warnings people understand. As a proportionate regulator, we’re giving firms that apply a little more time to get the other reforms requiring technology and business change right. We’ll maintain our close eye on firms during this extended implementation period.”
A Notable Transformation
Crypto firms are free to apply for flexibility that would allow them to implement more technical measures, such as the 24-hour cooling period, client appropriateness testing, and categorization features, by January 2024. The FCA has promised to take action against crypto companies illegally marketing to UK users from October 8.
Commenting on the latest development, Steve Rosenblum, CEO and co-founder of AI crypto risk management platform Libertify, said the era where crypto players operated primarily in their self-interest was coming to an end as the UK regulatory landscape is “rapidly shifting its focus” towards safeguarding the interests of retail investors.
In a statement sent to CryptoPotato, Rosenblum said the UK is undergoing a notable transformation where promoting any digital service or product without ensuring its suitability for customers would soon become a criminal offense.
SPECIAL OFFER (Sponsored) Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.
