United Kingdom tightens regulation of cryptocurrency trading

United Kingdom tightens regulation of cryptocurrency trading
September 7, 2023 – 12:52

Companies in the sector would be blocked from offering incentives to attract more customers.

The UK Financial Conduct Authority (FCA, in English) announced this Thursday that on October 8 a new regulation that will tighten the conditions for advertising and marketing products related to cryptoassets.

The rules, which will apply “to all companies, regardless of where in the world they are registered”, establish that sector advertisements must clearly warn about the risks associated with investment and “not be misleading,” the FCA detailed in a statement.

He also points out that any new investor must wait a 24 hour period before your run first transaction in cryptocurrencies and forces firms to categorize their clients according to various financial criteria.



Cryptocurrencies: how it affects companies in the sector

In a country where around one in ten adults has acquired some type of crypto asset, according to estimates by the British Government, companies in the sector They will also be prohibited from offering incentives their clients to attract new investors.

The Financial Conduct Authority stressed that companies will have a transition period, until next January, to implement the measures that require greater technical changes, although most of them should begin to be applied next month.

“Starting in October, the signatures of cryptoassets must be announced to the British consumers clearly, fairly and honestly. And they must provide warnings about risks that people can understand,” said Lucy Castledine, head of Consumer Investments at the FCA.

Source: Ambito

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