UK’s Financial Conduct Authority (FCA) will introduce new rules around crypto promotions aimed at safeguarding consumers.
The financial regulator proposal calls for explicit investor warnings and will come into effect on October 8.
The FCA’s new regulations require cryptocurrency companies to disclose risks clearly in their ads. This includes warnings like “if something goes wrong” and “be prepared to lose all the money you invest.”
There is also a stipulation that firms must give investors a “cooling-off” period, according to the Guardian. The purpose of the cooling-off period is to give potential investors time to think over their choice. It aims to lessen the possibility of impulsive investments.
FCA notifications suggest that investors have a choice to invest in any asset class. However, it encourages customers to take the time to educate themselves about the risks involved before making an informed…
