BEFORE YOU GO...
Check how Shufti Pro can verify your customers within secondsRequest Demo
The UK Financial Watchdog has alerted all Crypto firms to be prepared for advertising rule change later in 2023.
FCA (Financial Conduct Authority) has issued an alert to all crypto firms mentioning a change in rules later this year, also warning that any breaches from company officials could lead to up to two years in prison.
Last week, Britain’s Finance Ministry said that it would introduce secondary legislation allowing crypto firms which comply with FCA’s anti-money laundering safeguards to issue their own promotions, until the introduction of new crypto regulation expected in 2024.
The current advertising must be approved by a firm having full FCA authorisation.
The government also said that it would reduce the implementation period of modification i.e., six months to four months after the parliament has set out secondary legislation.
The FCA will also get the power of supervision and enforcement over the AML-complying businesses promoting crypto assets. The watchdog then can force a firm to take down its website for any misconduct.
“All crypto asset firms marketing to UK consumers, including firms based overseas, will soon need to comply with the new UK financial promotions regime,” the FCA said in a statement on Monday.
“Firms must start preparing now for this regime. We will take robust action against firms breaching these requirements.”
“There is unlikely to be any compensation under the Financial Services Compensation Scheme for consumers who lose money,” it added.
The UK watchdog said that crypto assets remained a significant concern and reiterated that customers should be prepared to lose all of their money if they purchase crypto assets.