New Delhi: The Financial Conduct Authority (FCA) in the United Kingdom has announced implementing new rules for crypto influencers starting October 8, 2023. These regulations aim to impose stricter guidelines on individuals promoting cryptocurrencies, according to reports.
Under the new rules, crypto exchanges in the UK will be required to introduce a “cooling-off period” for new investors. Additionally, the FCA will prohibit the offering of “refer a friend” bonuses by organizations operating in this market.
Sheldon Mills, the executive director of consumers and competition at the FCA, emphasized the need for the crypto industry to prepare for these significant changes. The FCA is working on additional guidance to assist companies in meeting regulatory expectations.
The new regulations will require crypto companies to verify the knowledge and experience of users engaging in crypto investments. Furthermore, advertisements related to cryptocurrencies must include clear risk warnings and must not contain any misleading information, as stated in the reports.
These measures are aimed at ensuring greater transparency and consumer protection within the crypto industry. By imposing stricter rules on crypto influencers, the FCA intends to mitigate the risks associated with cryptocurrency investments and provide investors with accurate information to make informed decisions.
Overall, the FCA’s decision to implement new regulations for crypto influencers reflects the growing importance of regulatory oversight in the cryptocurrency space. It underscores the need for industry players to adhere to higher standards in order to protect investors and promote a safer environment for cryptocurrency transactions.