Crypto Companies Get More Time To Comply With UK Regulations
In June, the United Kingdom’s Financial Conduct Authority set new regulations on how crypto asset firms should advertise their products to UK consumers.
The government of the UK announced that crypto assets like Bitcoin and companies dealing with crypto would follow the financial promotion regime of the FCA.
The Update
Initially, the FCA announced a 24-hour cool-off period before the new rules sprung into action on October 8, 2023. However, on Thursday, the British Regulatory Authority announced that firms could apply for more time to comply.
According to the FCA, firms may receive time until January 8, 2024, “to introduce features that require greater technical development,” as stated.
The FCA stated, “Firms must first apply for the flexibility which would then allow them time to make the required back-office changes successfully.”
Lucy Castledine, the FCA’s director of consumer investments, said, “As a proportionate regulator, we’re giving firms that apply a little more time to get the other reforms requiring technology and business change right.”
Also Read: Bitcoin Network Faces Congestion With Over 560,000 Unconfirmed Transactions
Scope Of The New Rules
The new regulations banned incentives and bonuses on referral and new joiner programs, along with clear risk warnings included in the promotions.
FCA added crypto services under the country’s high-risk investment category in the marketing materials, and the public promotions will require approvals from any authorized firm.
The rules will come into effect in early October to offer the highest level of protection to users in the UK by making crypto related products “clearer and more accurate,” as per the FCA.
FCA’s statement also mentions penalties for not complying with any rules after the enforcement will be charged as a criminal offense liable to “unlimited fine” and/or up to two years of imprisonment.
Lucy Castledine said the FCA was “concerned by the failure of many overseas and unregulated crypto firms to engage with us on the new rules.”
The UK watchdog’s efforts of extending the cooling period indicate their commitment to ensuring consumer protection and promoting digital innovation in the crypto industry.
Also Read: Bitcoin (BTC) To Soon Get Fair Accounting Rules in the US, Here’s What It Means
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