UK Financial Conduct Authority (FCA) stated on the 4th that they will be offering crypto assets (virtual currencies) to customers in the UK will need to abide by current regulations on financial product promotion by 8 October 2023.
The proposals of the government will prohibit the marketing of the majority of unregulated crypto assets (including Bitcoin and Ether).
FCA is seeking input on the specific regulations that will be imposed on businesses who promote these kinds of crypto assets.
The plan places a number of restrictions on how products may be advertised. It specifies, for instance, what someone with particular authority or credentials should do or what a business adhering to the Money Laundering, Terrorism Financing and Money Transfer Regulations (MLR) and having registered with the FCA should do.
Additionally, the promotion must adhere to the guidelines separately defined by FCA, even if the prerequisites are satisfied and it is carried out.
Consumers and Competition Executive Director Sheldon Mills stated:
The decision to purchase cryptocurrency is left to the individual. But studies reveal that a lot of people regret making snap judgments. Our laws provide consumers enough time and accurate risk information to make a knowledgeable choice.
“Consumers ought to remain aware that cryptocurrency is still highly risky and largely unregulated.” Investors should be aware that they could lose everything.
In other news, the UK‘s newly created “Department for Science Innovation and Technology” would investigate economic potential and strategies relating to the Web3 and the Metaverse (virtual space).