{"id":7493,"date":"2023-06-08T08:55:01","date_gmt":"2023-06-08T08:55:01","guid":{"rendered":"https:\/\/www.bitrabo.com\/community\/uk-regulator-imposes-tougher-rules-on-crypto-advertising\/"},"modified":"2023-06-08T08:55:44","modified_gmt":"2023-06-08T08:55:44","slug":"uk-regulator-imposes-tougher-rules-on-crypto-advertising","status":"publish","type":"post","link":"https:\/\/www.bitrabo.com\/discover\/uk-regulator-imposes-tougher-rules-on-crypto-advertising\/","title":{"rendered":"UK Regulator Implements Stricter Rules on Crypto Advertising"},"content":{"rendered":"\n
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The Financial Conduct Authority (FCA), the regulatory body in the UK, has imposed new, tougher rules to protect consumers against possible losses when investing in crypto assets and companies dealing with them. The FCA has developed a set of new marketing rules for crypto-related companies that are patterned after the regulations that it applies to known high-risk investments in traditional finance. <\/p>\n

<\/span>What the UK Regulator Wants: Clear Risk Warnings and \u2018Cool Off\u2019 Period<\/b><\/span><\/h2>\n

The FCA considers cryptocurrencies such as Bitcoin, Ethereum, Dogecoin, and Litecoin as high-risk, restricted mass market investments. In this regard, the regulator now requires crypto firms to provide detailed risk warnings on their promotional campaigns, such as advertisements. It also bans the \u201crefer a friend\u201d scheme, in which owners or users of crypto assets get rewards by recruiting people to buy digital currencies using a particular platform. Additionally, the FCA wants to impose a 24-hour \u201ccool off\u201d period for first-time crypto investors. This means that new customers will have to wait for at least a full day after successful registration of a valid trading account before being allowed to make any kind of purchase.<\/p>\n

According to Sheldon Mills, the executive director of the FCA’s Consumers and Competition Division, which oversees 50,000 firms in the UK, consumers should be aware that crypto remains largely unregulated and high-risk. The new rules will take effect on October 8, 2023.<\/p>\n

<\/span>Resistance from Crypto Firms<\/b><\/span><\/h2>\n

CryptoUK, a trade association in the UK for the crypto industry that practices self-regulation, hopes to review findings that prove the 24-hour \u201ccool off\u201d period is necessary. The organization also desires that pertinent regulations enable consumers to confidently transact and invest in crypto assets as they have other use cases aside from being just investments.<\/p>\n

Featured image from Financial Times<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Financial Conduct Authority (FCA), the regulatory body in the UK, has imposed new, tougher rules to protect consumers against possible losses when investing in crypto assets and companies dealing with them. The FCA has developed a set of new marketing rules for crypto-related companies that are patterned after the regulations that it applies to […]<\/p>\n","protected":false},"author":1,"featured_media":7495,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"slim_seo":{"title":"UK Regulator Implements Stricter Rules on Crypto Advertising - Bitrabo","description":"The Financial Conduct Authority (FCA), the regulatory body in the UK, has imposed new, tougher rules to protect consumers against possible losses when investing"},"footnotes":""},"categories":[316],"tags":[1629,504,1627,1626,824,1628],"class_list":["post-7493","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","tag-advertising","tag-crypto","tag-imposes","tag-regulator","tag-rules","tag-tougher"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/7493","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/comments?post=7493"}],"version-history":[{"count":0,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/7493\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media\/7495"}],"wp:attachment":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media?parent=7493"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/categories?post=7493"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/tags?post=7493"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}