According to the latest press release, the Financial Conduct Authority (FCA) of the United Kingdom (UK) has imposed stricter rules to prevent misleading adverts concerned with high-risk investment products. This rule will not apply to promotional activities of crypto assets. UK Govt Wants Stricter Rules For Crypto The UK government announced in January its plan to bring crypto marketing under the FCA’s remit. After getting confirmed in legislation, the FCA will reveal final rules on “qualifying crypto assets.” The press release said, “Crypto remains high risk so people need to be prepared to lose all their money if they choose to invest in crypto assets.” The stricter rules will affect the high-risk investments and demand the firms that approve and issue marketing to have suitable expertise. They will also run checks to ensure the consumers and their investments match up. It must be noted that incentives like “refer a friend bonuses” will be banned. Firms need to establish clearer and more projecting risk warnings. Sarah Pritchard, Executive Director of Markets at the FCA, said in the release, “Our new simplified risk warnings are designed to help consumers better understand the risks, albeit firms have a significant role to play too.” “Where we see products being marketed that don’t contain the right risk warnings or are unclear, unfair or misleading, we will act,” she added. The FCA has issued warnings to significant numbers...
