British Financial Regulator Issues 146 Crypto Alerts in 24 Hours
The Financial Conduct Authority (FCA), the top financial regulatory body in the United Kingdom, has issued 146 alerts within the first 24 hours of its new crypto marketing regime. The FCA recently introduced changes to legislation that bring crypto asset promotions under its remit. It expects businesses such as social media platforms, app stores, search engines, domain name registrars, and payments firms to take these alerts seriously and protect UK consumers from illegal promotions.
FCA’s Call for Consumer Protection
The FCA emphasizes the need for consumers to exercise caution by checking its Warning List before making any crypto investments. Huobi and Kucoin, both cryptocurrency trading platforms, were added to the FCA’s Warning List of Unauthorized Firms. Although they claimed not to operate in the UK, they expressed a commitment to comply with relevant laws and regulations.
New Rules for Promoting Crypto Assets
Since October 8th, any firms wishing to promote crypto assets in the UK must be authorized or registered by the FCA or have their marketing approved by an authorized firm. Promotions must adhere to FCA rules, including being clear, fair, and not misleading. They must also display prominent risk warnings and avoid incentivizing people to invest. The FCA reminds people that investing in cryptoassets remains high-risk and individuals should be prepared to lose all their money.
Hot Take: Protecting Consumers from Illegal Crypto Promotions
The FCA’s issuance of 146 crypto alerts within just 24 hours demonstrates its commitment to protecting UK consumers from fraudulent or misleading cryptocurrency promotions. By urging various businesses and platforms to consider these alerts seriously, the regulator aims to ensure that individuals are not lured into illegal investment schemes. With the introduction of new rules for promoting crypto assets, the FCA is working to align cryptocurrencies with other high-risk investments and emphasize the importance of consumer protection in the rapidly evolving crypto market.
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