Key Points: The UK Financial Conduct Authority is reminding cryptocurrency firms to adhere to its updated rules for advertising.
Businesses could be subject to large fines and even imprisonment for as long as two years.
AML-compliant cryptoasset companies that promote crypto assets will also be subject to FCA oversight.
The UK Financial Conduct Authority warned the cryptocurrency industry Monday to be ready for a change to the law regarding advertising later this year. This would allow cryptocurrency businesses that follow the financial watchdog’s anti-money laundering safeguards, to run their own promotions, until new crypto regulation is implemented, which is likely in 2024.
“All cryptoasset companies marketing to UK consumers, even those based overseas, will soon have to comply with the new UK financial promotion regime.”
According to the financial regulator, although the new cryptosystem has not been completed, regulations will be similar to those that apply to high-risk investments. This will require transparency and equity in marketing and give clients a 24-hour cooling off period to reconsider rash purchases.
“This regime will apply regardless of whether the firm’s based overseas or what technology was used to promote cryptoassets to UK customers.”
Currently, a company with full FCA authorization must authorize the advertisement.The administration also announced that it would shorten the transitional period from six months to four months after secondary legislation has been established by parliament.Additionally, AML-compliant cryptoasset enterprises that promote cryptoassets will be subject to the FCA’s supervision and enforcement authorities, which include the ability to order a business to take down its website.The watchdog emphasized that customers should be ready to lose all of their money if they want to invest in cryptoassets and that these investments remain very risky.DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.Join us to keep track of news: https://linktr.ee/coincuWebsite: coincu.comHaroldCoincu NewsTags: AMLcryptoFCAUKUK Treasury