UK’s FCA to Extend Deadline for Crypto Firms to Implement Changes to Marketing Processes
The UK’s Financial Conduct Authority (FCA) has pushed back the deadline for cryptoasset firms to implement certain rule changes to their crypto marketing processes.
In a new update announced Thursday, the watchdog clarified that the core crypto marketing rules including the ban on incentives like referral bonuses will come into effect from Oct. 8. Only new firms will get more time to introduce features “that require greater technical development.”
“Firms must first apply for the flexibility which would then allow them time to make the required back-office changes successfully,” FCA wrote.
This includes a 24-hour cooling-off period for new customers, which means crypto firms must wait for a day when a new customer makes a purchase before sending them any offers.
Starting October 8, UK customers will have more protection as crypto marketing by companies “must be clear, fair and not misleading.” The cryptoasset firms must carry appropriate risk warnings rather than inappropriately incentivizing people to invest, the new tighter rules say.
“From this October, crypto firms must market to UK consumers clearly, fairly and honestly. And they must provide risk warnings people understand,” Lucy Castledine, Director of Consumer Investments at FCA, noted. “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.”
The tightening of rules comes as a response to the failure of many overseas and unregulated crypto firms, Castledine added.
Crypto companies that breach the new rules and do not comply past the October 8 deadline, will be committing a criminal offense and will have to face unlimited fines and/or up to 2 years imprisonment, the financial
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