The Financial Conduct Authority (FCA), the United Kingdom’s financial watchdog, is about to tighten its grip on misleading cryptocurrency ads. According to a news release, the new guidelines would see the regulator crack down on misinformation about high-risk crypto assets in the United Kingdom.
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FCA to Combat Misleading Cryptocurrency Advertisements
The Financial Conduct Authority, a financial regulatory organization in the United Kingdom, is introducing stricter guidelines. The idea is to combat misleading cryptocurrency advertisements. The FCA is preparing to step up its efforts to combat deceptive marketing in the cryptocurrency industry. According to a press release, the regulator will enforce the new rules in the United Kingdom. Instead, they will be cracking down on false information about high-risk crypto assets.
The new regulations require companies to provide “clearer and more conspicuous risk warnings” and prohibit them from offering investment incentives such as referral bonuses. This may assist in protecting investors from losses. Furthermore, companies that promote high-risk investments need to conduct more extensive background checks to ensure that investors and clients are suitable.
UK Regulator Prohibited False Advertising
Regulators worldwide have expressed concern about spreading false information about volatile assets such as cryptocurrencies. In that context, the British government attempted to lay the legal groundwork for the cryptocurrency industry. As a result, the government has prioritized the promotion of crypto goods and services before moving on to other aspects of regulation.
The FCA is responsible for regulating the marketing of high-risk digital assets in the United Kingdom. However, the FCA is preparing to ramp up its efforts to combat misleading marketing in the cryptocurrency sector. Legislators have yet to approve the new regulations, so the plan is still in its early stages. Following approval, the FCA will publish its proposed regulations on promoting and marketing crypto assets. Newbies and even professional investors continue to lose money as cryptocurrency is a high-risk investment. As a result, the new regulations require brokers who provide digital financial goods to have expertise in their respective fields to promote their offerings.
The Financial Conduct Authority (FCA) has declared that certain investment incentives will be prohibited to attract more customers. Furthermore, the FCA will prohibit welcome bonuses and referral bonuses. Meanwhile, the FCA wants cryptocurrency companies to be more open about the potential financial risks associated with their products. As a result, consumers can buy cryptocurrencies in the UK. The FCA focuses on preventing terrorism and money laundering while regulating crypto asset trading. Before a crypto corporation conducts business in Britain, it must register with the financial watchdog.
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Source: https://insidebitcoins.com/news/fca-introduces-stricter-crypto-guidelines-to-prohibited-misleading-ads