UK Financial Conduct Authority (FCA) Allows Flexibility for Crypto Firms to Implement New Rules
The UK Financial Conduct Authority (FCA) has expressed its willingness to provide some flexibility for registered cryptocurrency firms to adhere to upcoming regulations. The FCA has stated that registered or authorized firms will be able to “apply for flexibility” in implementing a cooling-off period when new rules come into effect on October 8, 2023.
The UK is aiming to establish itself as a leading digital asset hub, and this includes implementing clearly defined regulations. One aspect of the regulatory change involves aligning marketing rules with existing regulations for high-risk investments.
Lucy Castledine, the FCA Director of Consumer Investments, has emphasized that crypto firms must promote their offerings in a clear, fair, and honest manner, while also providing comprehensible risk warnings.
“As a proportionate regulator, we are giving firms that apply a little more time to ensure they correctly implement the other reforms involving technology and business changes. We will closely monitor firms during this extended implementation period. We are concerned about the lack of engagement from many overseas and unregulated crypto firms regarding the new rules. From October 8, we will take action against firms that illegally market to UK consumers.”
The FCA has emphasized that breaking the rules after October 8 will result in criminal liability.
The FCA has provided examples of how authorized firms must comply with the new rules, which can be found on their website.
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