According to CoinDesk, the UK Financial Conduct Authority (FCA) is concerned about the poor quality of responses it has received from unregulated overseas crypto firms regarding the upcoming promotions regime for the sector. The new rules, which require crypto firms to have appropriate warnings on websites and implement a 24-hour waiting period for new investors to confirm they want to enter into a contract with companies, will take effect on October 8. Firms have the option to apply for a three-month extension to comply with the rules.

Lucy Castledine, director of consumer investments at the FCA, said the regulator is concerned about a lack of engagement from some unregulated overseas firms. However, crypto firms like ByBit, Luno, and payments platform PayPal, who recently announced they were halting certain services to the UK market in order to comply with the rules, received a nod of approval from the watchdog. The FCA is prepared to monitor firms' compliance and has the ability to scan 100,000 websites on a daily basis, according to Castledine.

Unauthorized ads or promotions could mean jail time, the FCA warned in February. The regulator will also have powers against overseas companies serving UK clients without registering with the FCA, but how they will handle them will vary case by case, Castledine added. The regulator submits information on non-compliant firms to global watchdogs like the International Organization of Securities Commissions (IOSCO) to be added to alert lists.