The crackdown on the ‘wild west’ elements of the crypto industry is postponed
The crackdown on the ‘wild west’ elements of the crypto industry is postponed
The crackdown on cryptocurrency has been postponed.
The Financial Conduct Authority said stricter regulations on cryptocurrency marketing would come into effect next month, but companies can request more time to comply, such as a 24-hour cooling-off period.
It said that companies could be given until January 8. The rules would come into effect from October 8.
The delay is a blow to campaigners who have argued that protections should be introduced soon to help vulnerable consumers.
The FCA has criticized some companies.
The Financial Conduct Authority said stricter regulations on the marketing of crypto assets would come into effect next month as planned, but firms could request more time to comply
“We are concerned about the inability of many foreign and unregulated crypto companies to engage with us on the rules,” said consumer investment director Lucy Castledine.
“We will take action against companies illegally advertising to British consumers.”
Violations of the rules, which aim to make the marketing of crypto assets clearer and more precise and ban incentives such as “refer a friend” bonuses, could be punished with an unlimited fine or up to two years in prison.
The watchdog reiterated that crypto assets carry high risk and buyers should be prepared to lose all their money.