UK’s Regulator Extends Crypto Marketing Rules Deadline Until January Next Year
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The Financial Conduct Authority (FCA) has hinted that it plans to extend its crypto marketing rules deadline until January 8 next year. The regulator noted that it considered the initial deadline of October 4 too soon for the companies.
It wants complete compliance and wants to give the crypto firms enough time to put things in order. The extension will also enable the cryptoasset companies to introduce new features that need more significant development.
More Accuracy And Clarity In Crypto Marketing
The rules were designed to provide more accuracy and clarity for the marketing of crypto products. According to the regulator, firms must apply for flexibility, allowing them to make the necessary changes successfully.
Additionally, the FCA reiterated that the methods of implementation and the new rules aligned with the strategy it took last year when the rules for marketing and high-risk investments were introduced.
Director of Consumer Investments at FCA, Lucy Castledine, commented on the development. She stated that crypto companies must start marketing to UK consumers honestly, fairly, and clearly from this October.
They must also issue risk warnings investors will understand. Additionally, the new rules will ban incentives such as “refer a friend” from the platforms.
She said the regulator wants to give firms more time to get it right with business and technology changes.
The FCA has shown serious interest in protecting consumers in the highly volatile crypto market. Earlier this year, the watchdog warned firms that market cryptoassets always to follow the rules and regulations it has set for the industry.
Head of market interventions at FCA, Victoria McLoughlin, stated that the UK is legislating to allow only qualifying cryptoassets within the scope of the financial promotion rule.
The New Rule Will Provide Much Better Protection
The government is looking for a more flexible but stringent rule in crypto assets. The new promotion regime will cover indigenous companies and those based overseas.
The law also stated the four processes to promote cryptoassets to UK consumers rightfully. This includes online advertising, social media posts, mobile apps, and websites.
Cryptoasset marketers must refrain from enticing people into investing and warn the investors about the risks of investments in the industry.
The FCA revealed that the new rule, after its implementation, will give UK customers much better protection since the crypto asset marketers will provide clear promotional content. It will enable consumers to make more informed investment decisions.
