Copy link
Increase text size
Decrease text size
Link copied

UK's Financial Conduct Authority (FCA) Prepares Strict Regulations for Cryptocurrency Advertisements

In the wake of pending legislation, the UK's FCA is planning to introduce strict regulations on cryptocurrency advertising, regardless of significant criticism.

Fri, 09 Jun 2023, 00:22 am UTC

The Financial Conduct Authority (FCA), the financial watchdog in the United Kingdom, is gearing up to implement a stringent regulatory framework targeting cryptocurrency advertisements. These regulations will come into effect once the pending crypto-focused legislative policies are finalized.

Under the proposed rules, cryptocurrencies will be classified as limited access investment products, requiring "clear risk warnings" to be included in all promotional content. The FCA also intends to prohibit enticing schemes such as referral bonuses or "welcome bonuses" to discourage reckless investment behaviors.

The regulatory measures will be implemented through the Financial Services and Markets Bill, currently undergoing legislative deliberation in Parliament. This bill outlines the UK's financial framework post-Brexit and grants the FCA the authority to enforce regulations in the growing crypto sector, aligning with the proposed legislation.

Despite facing significant opposition during the consultation process last year, the FCA remains committed to its agenda. Critics have raised concerns about categorizing cryptocurrencies as high-risk assets and limiting enticing offers to potential investors.

Simultaneously, the FCA has initiated a public forum to gather feedback on its additional guidance, aimed at ensuring companies understand the impact of the crypto promotional requirements. The proposed guidelines advise crypto businesses to conduct thorough due diligence and verify the intrinsic value of advertised crypto assets to avoid misleading promotions.

Promotions related to stablecoins will also face strict scrutiny. Companies advertising stablecoins must ensure that their claims regarding stability or ties to fiat currencies do not mislead potential investors. These measures reflect the FCA's ongoing commitment to curbing and preventing significant financial harm. Companies that fail to comply with these promotional regulations could face severe penalties, including potential imprisonment for up to two years, substantial financial fines, or both.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

  • PUBLISH (NEWS) $0.000613 (+13.09%)
  • Bitcoin (BTC) $26,476.80 (-0.21%)
  • Ethereum (ETH) $1,624.74 (+0.19%)
  • Tether USDt (USDT) $0.999213 (-0.01%)
  • BNB (BNB) $213.46 (-0.45%)
  • XRP (XRP) $0.501486 (-0.38%)
  • PUBLISH (NEWS) $0.000613 (+13.09%)
Jul 15, 2021 (Thursday)
13:30
BTC Surges by 1.16% Within 5 Mins, Marking 31,824.01 USDT
12:06
BTC Surges by 1.12% Within 5 Mins, Marking 32,104.8 USDT
10:25
BTC Drops by 1.03% Within 5 Mins, Marking 32,171.88 USDT
02:13
TriumphX Scouts 'MINAMCOMPANY' CEO Woo-Seong Lee As Creative Director
02:00
ETH Tops List Of Crypto Net Inflow With $298.96 Mln In Past 10 Hours
Jul 14, 2021 (Wednesday)
13:14
BTC Surges by 1.03% Within 5 Mins, Marking 32,738.08 USDT
09:03
BTC Surges by 1.01% Within 5 Mins, Marking 31,899 USDT
02:30
Crypto Market Sentiment On Jul 14: Market In "Extreme Fear"
02:00
ETH Tops List Of Crypto Net Outflow With $224.97 Mln In Past 10 Hours
Jul 13, 2021 (Tuesday)
02:30
Crypto Market Sentiment On Jul 13: Market In "Extreme Fear"
02:00
ETH Tops List Of Crypto Net Outflow With $178.61 Mln In Past 10 Hours
Jul 12, 2021 (Monday)
02:30
Crypto Market Sentiment On Jul 12: Market In "Extreme Fear"
02:00
BTC Tops List Of Crypto Net Inflow With $164.82 Mln In Past 10 Hours
Jul 11, 2021 (Sunday)
21:31
BTC Surges by 1.02% Within 5 Mins, Marking 34,475.6 USDT
10:00
ETH Tops List Of Crypto Net Inflow With $122.76 Mln In Past 18 Hours
06:17
SOBA Listed On LATOKEN
02:30
Crypto Market Sentiment On Jul 11: Market In "Extreme Fear"
02:00
BTC Tops List Of Crypto Net Outflow With $87.56 Mln In Past 10 Hours
Jul 9, 2021 (Friday)
21:40
BTC Surges by 1.08% Within 5 Mins, Marking 33,911.8 USDT
02:30
Crypto Market Sentiment On Jul 09: Market In "Extreme Fear"
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.