Crypto Companies Offer Customers a 24-hour “cooling-off period” and revised changes in the way digital assets can be promoted and marketed.
Thank you for reading this post, don't forget to subscribe!
New investors will have to wait a full day before they can complete their transaction.
The government estimates up to one out of every 10 UK adults now owns some form of crypto.
Bosses of companies that fail to comply could face up to two years imprisonment, a fine, or both.
“Refer a friend” adverts will be banned, while others must be “clear, fair and not misleading.
The rules, which took effect on 8 October, will apply to crypto assets which are transferable and fungible – including digital currencies such as Bitcoin.
This means purchases of non-fungible tokens (NFTs) will not be covered by the new advertising rules, aside from a ban on offering them as an incentive for investing in crypto.
The Financial Conduct Authority is introducing the changes after the government legislated to give it authority over how digital assets are promoted.
The rules will apply to all companies marketing crypto in the UK. The FCA will “take robust action” against those that break the rules, including taking their websites offline.
This is evident in the recent cautionary steps taken by crypto companies, where many companies including Binance Exchange left the UK crypto market.