Crypto News

UK Regulator Threatens Imprisonment for Non-Compliant Crypto Companies

Array
UK FCA Issues Stern Warning to Crypto Firms on Ad Compliance

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.

Tags

Mohammad Ali is a fintech and cryptocurrency writer who has been covering the intersection of finance and technology for several years. Ali has a deep understanding of the financial industry and the ways in which technology is changing it, with a special focus on the rise of digital currencies and blockchain technology.