UK Financial Regulator Warns Crypto Firms of Jail Time for Unauthorized Ads
U.K. crypto companies were urged on Monday to prepare for new restrictions on financial promotions, with the Financial Conduct Authority warning that breaches can lead to a prison term of up to two years.
While the new crypto regime is not yet finalized, the financial regulator said the rules would mirror those for other high-risk investments, with promotions having to be being clear and fair, and customers offered a 24-hour cooling-off period to reconsider hasty purchases.
“This regime will apply to all firms marketing cryptoassets to UK consumers regardless of whether the firm is based overseas or what technology is used to make the promotion,” the FCA said in a statement. “Acting now will help ensure they can continue to legally promote to UK consumers.”
New ad rules for the crypto sector were proposed last year. The Treasury last week said that crypto companies registered for money laundering purposes, and not just fully authorized traditional financial firms, will be allowed to approve new campaigns.