U.K. Financial Authority Plans More severe Crypto Marketing Audits
The Financial Conduct Authority of the United Kingdom has established new restrictions regarding marketing high-risk assets. Although the limits do not apply to crypto advertisements, crypto advertising regulations are in the works.
According to a press statement from the U.K. regulator, people who want to invest in crypto assets should be prepared to lose all of their money.
FCA to Regulate Cryptocurrency Marketing Efforts
The U.K.’s banking authority has established new guidelines for marketing “high-risk assets”; crypto restrictions are forthcoming.
Monday, the Financial Conduct Authority issued a press release announcing the implementation of stricter regulations for organisations offering “high-risk products.” Under the new laws, companies are obliged to disclose the risks involved with investing in a particular instrument and are prohibited from giving investment inducements such as referral bonuses. The FCA said that the purpose of the measures is to better safeguard customers.
The FCA has indicated that it would propose new crypto-specific laws in the future, even if the current rules do not apply to firms that promote crypto assets. According to the news release, these regulations rely on how the U.K. government legislates cryptocurrency marketing and “are expected to follow the same approach as those for other high-risk assets.”
The FCA has signalled that it takes a very unfavourable attitude toward cryptocurrencies, issuing repeated warnings about the dangers of investing in the field. The statement reissued today warned investors about the risks associated with digital assets. According to the report, people who wish to invest in crypto assets must be prepared to lose their whole investment capital.