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UK Financial Regulator Warns Crypto Firms of Jail Time for Unauthorized Ads
The rules aren’t set in stone but will mirror those for other high-risk investments, the Financial Conduct Authority said.
U.K. crypto companies were urged on Monday to prepare for new restrictions on financial promotions, with the Financial Conduct Authority warning that breaches can lead to a prison term of up to two years.
While the new crypto regime is not yet finalized, the financial regulator said the rules would mirror those for other high-risk investments, with promotions having to be being clear and fair, and customers offered a 24-hour cooling-off period to reconsider hasty purchases.
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“This regime will apply to all firms marketing crypto assets to U.K. consumers regardless of whether the firm is based overseas or what technology is used to make the promotion,” the FCA said in a statement. “Acting now will help ensure they can continue to legally promote to U.K. consumers.”
New ad rules for the crypto sector were proposed last year. The Treasury said last week that crypto companies registered for money laundering purposes, and not just fully authorized traditional financial firms, will be allowed to approve new campaigns.
Read more: UK Crypto Industry Celebrates Government’s Planned Exemptions for Crypto Ad Approvals
Jack Schickler
Jack Schickler was a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium. He previously wrote about financial regulation for news site MLex, before which he was a speechwriter and policy analyst at the European Commission and the U.K. Treasury. He doesn’t own any crypto.
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Crypto Industry Asks President Trump to Stop JPMorgan’s 'Punitive Tax' on Data Access
A coalition of fintech and crypto trade groups is urging the White House to defend open banking and stop JPMorgan from charging fees to access customer data.
What to know:
- Ten major fintech and crypto trade associations have urged President Trump to stop big banks from imposing fees that could hinder innovation and competition.
- JPMorgan's plan to charge for access to consumer banking data may debank millions and threaten the adoption of stablecoins and self-custody wallets.
- The CFPB's open banking rule, which mandates free consumer access to bank data, is under threat as banks have sued to block it, and the CFPB has requested its vacatur.
