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The Financial Conduct Authority on Thursday said it will introduce some ‘tough’ new rules for marketing cryptoassets.
The new advertising rules will come into play on October 8.
The new rules mean crypto firms must ensure that people have the appropriate knowledge and experience to invest in crypto. Those promoting crypto must also put in place clear risk warnings and ensure adverts are clear, fair and not misleading.??
As part of these measures, the UK watchdog said that ‘refer a friend’ bonuses will be banned.
Sheldon Mills, executive director of Consumers & Competition, said: ‘It is up to people to decide whether they buy crypto. But research shows many regret making a hasty decision. Our rules give people the time and the right risk warnings to make an informed choice.
‘Consumers should still be aware that crypto remains largely unregulated and high risk. Those who invest should be prepared to lose all their money.
‘The crypto industry needs to prepare now for this significant change. We are working on additional guidance to help them meet our expectations.’
The FCA said it is also consulting on additional guidance setting out expectations of firms advertising crypto to UK consumers. Those wishing to have their say will have until August 10 to respond, it added.
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