The UK’s Financial Conduct Authority will give some crypto firms more time to implement certain changes to their marketing processes ahead of new rules on financial promotions set to kick in next month.
(Bloomberg) — The UK’s Financial Conduct Authority will give some crypto firms more time to implement certain changes to their marketing processes ahead of new rules on financial promotions set to kick in next month.
Crypto services are set to be categorized under the country’s high-risk investments category for marketing materials from October 8, meaning all platforms globally will need to display clear risk warnings to UK customers and have any public promotions approved by an authorized firm.
Firms may be given until Jan. 8 next year “to introduce features that require greater technical development,” the regulator said in a statement Thursday, but they must first apply to be eligible for the delay. This includes introducing a 24-hour cooling-off period for new customers.
Not complying with the rules beyond Oct. 8 may constitute a criminal offense and could be punishable by an unlimited fine or imprisonment.
Read more: UK Financial Watchdog Tightens Rules for Cryptoasset Marketing
The FCA had been consulting with crypto industry participants in recent months about how to enact changes like the cooling-off period, following the change’s initial announcement in June. Lucy Castledine, the FCA’s director of consumer investments, said the watchdog was “concerned by the failure of many overseas and unregulated crypto firms to engage with us on the new rules.”
“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,” she said in the statement. “We’ll maintain our close eye on firms during this extended implementation period.”
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.