The UK’s Financial Conduct Authority (FCA), has introduced rules to tame misleading advertisements that are now official. But the new rules do not apply to crypto assets promotions yet, per its press release.
“These rules are likely to follow the same approach as those for other high-risk investments. Crypto remains high risk so people need to be prepared to lose all their money if they choose to invest in cryptoassets,” the press release states.
The FCA now looks forward to the U.K. government’s direction on how crypto marketing will fall under its purview. As the legislation finalizes, the “qualifying cryptoassets” rules would follow.
As per the new rules, the companies will have to undertake checks to enable a better consumer-investment matchup. Risk warnings will also have to be easy to follow.
“Our new simplified risk warnings are designed to help consumers better understand the risks, albeit firms have a significant role to play too,” says Sarah Pritchard, Executive Director (Markets), FCA.
Also Read: UK Law Commission to Place Crypto Under Property Law
Alluring statements, such as “refer a friend bonus,” will not be permissible anymore.
“Where we see products being marketed that don’t contain the right risk warnings or are unclear, unfair or misleading, we will act,” adds Sarah Pritchard.
