- The new rule will take effect Oct. 8
- Some other restrictions will also appear
The United Kingdom is tightening rules for crypto advertisers. This news comes from the Financial Conduct Authority (FCA).
The British regulator is introducing a cooling-off period for first-time investors. This is the period during which the customer can refuse to buy the asset/service, return it to the seller and get the money paid back. It’s not yet clear how long the “cooling-off period” will last and other details.
Crypto-sector firms will also be banned from advertising “invite a friend” bonuses.
“People decide whether they buy cryptocurrency. But studies show that many people regret hasty decisions. Our rules give people time and the right warnings about the risks to make informed choices,” the regulator explains its position.
The FCA is also working on additional rules in crypto advertising. Therefore, the list of prohibitions may be supplemented by. All interested parties can send their wishes to the department until August 10. As we said, the new law will become fully operational in October.
In August 2022, the FCA was already increasing oversight of advertising for high-risk investment products. But they did not apply to cryptocurrency, because at that time the Financial Supervision Authority had no rights to regulate this industry. Now the politicians have changed the law, and put more power in the hands of the FCA.
The law has been changed by the politicians.