The UK government intends to crack down hard on crypto companies that don’t play by the rules. In this sense, he announced new restrictions to come that concern financial promotions. He was careful to point out that crypto companies would be risking a lot if they didn’t take these restrictions into account. Here’s what its about.
Coming soon, new restrictions on crypto ads
It is true that the new regime on the crypto sector in the UK is not yet ready. However, the Financial Conduct Authority is already warning crypto companies about the upcoming restrictions. She said on Monday that the perpetrators risk a prison sentence of up to 2 years. It would be enough for them to make unauthorized advertisements on cryptos to be sentenced to this prison term. It should be remembered that the new rules on crypto advertising come from a 2022 proposal.
That said, the UK financial regulator has laid out the characteristics that financial promotions in the cryptosphere must have. He spoke in particular about clarity and fairness. He indicated that crypto companies must give customers the opportunity to reflect for 24 hours. The idea is to prevent consumers from mistakenly rushing to buy the products they allegedly promoted.
The text concerns the entire value chain
” All crypto businesses that market to UK consumers, including overseas-based businesses, will soon have to comply with the UK’s new financial promotions regime. Businesses need to start preparing for this regime now. We will take strong action against companies that do not comply with these requirements », said the Financial Conduct Authority.
It appears that the upcoming regime will apply to all companies trading crypto in the UK. Indeed, the British regulator stated: This scheme will apply to all businesses marketing digital assets to UK consumers, whether the business is headquartered overseas or technology is used to promote “.
Through the recent warning, the Financial Conduct Authority wants to prevent illegal advertisements in the crypto sector. Indeed, the UK regulator said: “ Acting now will ensure crypto businesses can continue to legally promote to UK consumers “.
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