The UK’s Financial Conduct Authority (FCA) will implement strict new rules on crypto advertising after regulations for the crypto industry are finalized, according to documents published on Thursday. The FCA said that under the new rules, cryptocurrencies will be classified as a "restricted mass market investment", which will require any advertising or promotions to contain "clear warnings of risks" and prohibit "refer a friend" or "recruitment rewards". and other investment incentives.
Companies that breach the FCA's upcoming marketing rules could face up to two years in prison, fines or both. The new regulations will take effect from October 8. It is reported that the cryptocurrency industry will be included in the scope of regulated financial activities in the UK through the Financial Services and Markets Bill, which represents the UK’s post-Brexit financial strategy and is currently being considered by Parliament. Through the Act, the FCA gains the power to make rules for the industry in accordance with applicable law. In addition to the upcoming rules, the FCA is also open for public consultation, aiming to ensure that "firms clearly understand the impact of this requirement on the promotion of crypto assets." (CoinDesk)