New UK Regulations Require Crypto Ads to Carry Risk Warnings
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The Financial Conduct Authority (FCA) in the United Kingdom has declared that crypto companies must include clear risk warnings in their advertisements starting October 8.
Organizations must also provide a cooling-off period for new investors.
A new UK Financial Conduct Authority (FCA) rule requires crypto firms to include risk warnings in ads and force cooling-off periods for novice investors.
The Financial Conduct Authority (FCA) in the United Kingdom has declared that crypto companies must include clear risk warnings in their advertisements starting October 8. Organizations must also provide a cooling-off period for new investors.
The FCA suggests a risk warning should inform consumers about potential total loss, with appropriate safeguards in place. Firms offering crypto assets like the well-known Bitcoin (BTC) must provide certain measures, such as a pause period for new investors.
The FCA’s executive director of consumers and competition, Sheldon Mills, emphasised that the crypto sector remains largely unregulated and carries high risk. Despite these risks, the UK doubled its crypto ownership between 2021 and 2022, according to the FCA’s survey.
The FCA reports an increase in crypto asset scams, jumping from 1,619 in 2019 to 6,372 in 2021.
Meanwhile, the UK Treasury revealed a plan in March to treat crypto regulation similarly to traditional assets such as stocks and bonds. This is part of a wider effort to regulate the market.
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