Stronger AD Restrictions From UK Financial Regulator FCA
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UK Govt Wants Stricter Rules For Crypto
The UK government announced in January its plan to bring crypto marketing under the FCA's remit. After getting confirmed in legislation, the FCA will reveal final rules on "qualifying crypto assets." The press release said,
"Crypto remains high risk so people need to be prepared to lose all their money if they choose to invest in crypto assets."
The stricter rules will affect the high-risk investments and demand the firms that approve and issue marketing to have suitable expertise. They will also run checks to ensure the consumers and their investments match up. It must be noted that incentives like "refer a friend bonuses" will be banned. Firms need to establish clearer and more projecting risk warnings.
Sarah Pritchard, Executive Director of Markets at the FCA, said in the release,
"Our new simplified risk warnings are designed to help consumers better understand the risks, albeit firms have a significant role to play too."
The FCA has issued warnings to significant numbers that do not understand the risk in the high-risk schemes. In number, 4,226 misleading adverts were withdrawn last year. From now on, adverts will display greater explicit warnings to future investors.