LONDON—In what are being described as “tough” rules, the U.K.’s Financial Conduct Authority (FCA) has introduced new requirements for companies advertising cryptoassets.
According to the new rules, companies marketing cryptoassets to consumers will have to introduce a “cooling-off period” for first-time investors starting Oct. 8, Fintech Futures reported.
Additionally, to make people understand the risks of buying crypto, “refer a friend” bonuses will also be banned.
The rules follow legislation approved in the United Kingdom aimed at bringing crypto promotions into the regulator’s control, with the aim of ensuring crypto firms place clear risk warnings to investors without being misleading, and making sure investors have appropriate knowledge and experience to invest in crypto, Fintech Futures said.
‘Regret Hasty Decisions’
“It is up to people to decide whether they buy crypto. But research shows many regret making a hasty decision. Our rules give people the time and the right risk warnings to make an informed choice,” said Sheldon Mills, executive director, consumers and competition, at FCA.
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