The Financial Conduct Authority (FCA) of the United Kingdom has warned crypto companies to comply with the country’s new financial promotion regime or face up to two years imprisonment.
Furthermore, the FCA stated that the crypto promotions must be “clear, fair, and not misleading” and that companies must use specific risk warnings and have a 24-hour cooling-off period for investors.
Moreover, the regulations are still subject to parliamentary approval but can only be communicated by an FCA-authorized person or a business registered with the agency.
In addition, the FCA encouraged crypto firms targeting UK consumers to prepare for this regime, and early preparations would allow them to continue promoting crypto legally.
The Advertising Standards Authority is also working to clamp down on misleading crypto ads. The UK government has plans to turn the country into a crypto hub and extend regulations to cover crypto exchange operations.
