Crackdown on the ‘Wild West’ Cryptocurrency Industry Delayed
A crackdown on the cryptocurrency industry has been delayed.
The Financial Conduct Authority (FCA) announced that stricter regulations regarding the marketing of cryptocurrencies will still be implemented next month. However, companies can request additional time to comply with the rules, which include a mandatory 24-hour cooling-off period.
The FCA stated that companies may have until January 8 to comply, instead of the previously scheduled October 8 deadline.
This delay is disappointing news for advocates who have been pushing for increased consumer protections in the industry.
Lucy Castledine, the director of consumer investments at the FCA, expressed concern over the lack of engagement from many unregulated crypto firms, stating, “We are concerned by the failure of many overseas and unregulated crypto firms to engage with us on the rules.”
The Financial Conduct Authority said stricter regulation about marketing crypto assets would come into force next month as planned but firms could apply for more time to comply
The FCA has vowed to take action against firms illegally marketing to UK consumers and has warned that breaches of the new rules, which aim to improve the clarity and accuracy of crypto asset marketing while banning incentives like ‘refer a friend’ bonuses, could result in unlimited fines or up to two years in prison.
It is important to note that the FCA continues to emphasize the high-risk nature of crypto assets and advises buyers to be prepared to lose all their invested funds.
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