UK Financial Conduct Authority to oversee cryptocurrency promotions

In an announcement made on June 8, the UK Financial Conduct Authority (FCA) announced that crypto promotions in the country will be subject to stricter regulations from October 8.

The UK regulator has required crypto companies in the country to impose a waiting period for first-time investors. Additionally, as part of measures to raise investors’ awareness of potential risks, the FCA has banned companies in the sector from using “refer a friend” bonuses.

FCA highlights ‘cooling off period’ on crypto investments
Sheldon Mills, executive director of consumer and competition at the FCA, issued a written statement on the issue. Mills underlined that the decision to purchase crypto belongs entirely to individuals.

However, Mills stated that investors who invest without thinking regret it later. The FCA executive stressed that the rules aim to give people sufficient time and appropriate risk management reflexes to enable an informed decision-making process.

However, under new regulations in the UK, crypto companies will be obliged to verify the knowledge and experience required for new investors to buy and sell crypto. It was stated that influencers promoting crypto should provide more transparent risk warnings.