- The UK is taking steps to prevent aggressive marketing strategies by banning incentives in cryptocurrencies, thus protecting investors from impulsive and risky decisions.
- They are technical measures implemented by the Financial Conduct Authority (FCA) to provide certainty to investors, including a crucial cooling-off period in a highly volatile cryptocurrency market.
- Crypto asset companies located outside the UK seeking to target British residents will also be affected.
The UK Financial Conduct Authority (FCA), aware of the challenges faced by investors in the highly volatile cryptocurrency market, has taken steps to implement new regulations aimed at ensuring transparency, fairness and security. in cryptocurrency-related marketing.
Starting next month, these regulations will go into effect, setting a new standard in the industry.
The main change is the prohibition of incentives
One of the most notable features of these new regulations is the prohibition of incentive systems, such as bonuses for referring other users.
Its objective is to stop aggressive marketing strategies that can lead consumers to make impulsive and risky decisions.
“From October, cryptocurrency companies must market clearly, fairly and honestly to UK consumers, providing understandable warnings about the risks.”Said Lucy Castledine, director of consumer investment at the FCA, emphasizing the importance of this ban.
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Other technical measures
One of them is a reflection period that will allow consumers to reconsider their investment decisions without facing penalties.
This is particularly relevant in a market as volatile as cryptocurrencies, where prices can fluctuate dramatically in a matter of minutes.
Additionally, cryptocurrency companies that are outside the UK but impact UK investors will also be affected.
The FCA is committed to addressing the lack of compliance of many foreign and unregulated crypto firms with respect to these new regulations. This ensures a higher level of protection for British investors and contributes to the integrity of the cryptocurrency market in the country.
When these new regulatory rules begin
From October 8, cryptoasset companies will have four legal avenues to market to UK consumers, including obtaining regulatory approval or qualifying for exemptions.
These measures on cryptocurrency marketing in the UK seek to protect investors and ensure that only those who fully understand the risks associated with crypto participate in this high-risk market.