The UK Financial Conduct Authority (FCA Financial Conduct Authority (FCA) The Financial Conduct Authority (FCA) is the largest financial regulator for all financial markets in the United Kingdom (UK).The UK regulator is responsible for the conduct of firms authorized under the Financial Services and Markets Act 2000. Moreover, the FCA is also responsible for the regulation of behavior in retail and wholesale financial markets, supervision of the trading infrastructure that supports those markets, and the prudential regulation of firms not regulated by the PRA. Its rol The Financial Conduct Authority (FCA) is the largest financial regulator for all financial markets in the United Kingdom (UK).The UK regulator is responsible for the conduct of firms authorized under the Financial Services and Markets Act 2000. Moreover, the FCA is also responsible for the regulation of behavior in retail and wholesale financial markets, supervision of the trading infrastructure that supports those markets, and the prudential regulation of firms not regulated by the PRA. Its rol Read this Term) is finalizing regulations around cryptocurrency marketing and advertising in the country, which are set to take effect from October 8. These proposed rules were reported as the number of crypto holders in the UK more than doubled in the past year.

New Crypto Ads Rules in the UK

According to the documents published today (Thursday), the new rules will classify cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term as “restricted mass market investments” and require “clear risk warnings” on any crypto advertisements or promotions. It will also ban investment incentives that came in the form of “refer to a friend” or “new joiner bonuses” schemes.

Another significant requirement will be the cooling-off period for the new investors, which will prohibit consumers from sending a Direct Offer Financial Promotions (DOFP) without a reconfirmation request at least 24 hours later.

Further, crypto firms need “adequate due diligence and have sufficient evidence of the underlying crypto asset to ensure the financial promotion is fair, clear, and not misleading.”

Additionally, the regulations proposed up to two years of imprisonment in case of any violations of these rules.

“It is up to people to decide whether they buy crypto. But research shows many regret making a hasty decision,” said Sheldon Mills, the Executive Director of Consumers and Competition at the FCA. “Our rules give people the time and the right risk warnings to make an informed choice.”

Mass Interest Shaping Regulatory Decision

A survey of 2,000 respondents by the FCA shows that 40 percent of them purchased cryptocurrencies as a gamble, while around 30 percent regretted their decision to do crypto investments.

“The requirement that all approvers of financial promotions have an understanding of cryptoassets and have permission to act as an approver also has the potential to introduce an overly restrictive regime, based on the incredibly small number of organizations which would meet that criteria for approver status,” said Su Carpenter, the Director of Operations at CryptoUK, the trade body for the UK crypto industry.

“We have concerns that the policy proposed may bring into play disproportionately restrictive barriers and create an unbalanced environment.”

Earlier, the UK ads regulator pulled down the crypto advertisements of several well-known brokers and exchanges. It even flagged two crypto fan tokens ads by football club Arsenal as misleading.

Meanwhile, several other jurisdictions, including Belgium, South Africa, and Thailand, also brought regulations to control the rampant promotion of cryptocurrencies.

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