Luno to Halt Some UK Customers from Trading Crypto as Regulation Looms
Luno, the cryptocurrency exchange, has announced that it will suspend trading for certain UK customers on its platform. The decision comes in anticipation of new cryptocurrency promotion regulations set to be implemented by the Financial Conduct Authority (FCA) on October 8. Luno’s Head of Public Policy, Nick Taylor, stated that the forthcoming FCA rules have prompted compliant crypto firms to make changes to their platforms. As a result, Luno will temporarily pause the ability to invest through its platform for some customers. However, affected Luno customers will still be able to sell and withdraw their funds. The company plans to reintroduce investment opportunities to customers gradually.
FCA’s New Rules for Crypto Promotions
The FCA introduced strict regulations for marketing cryptoassets in June. Under these rules, cryptocurrencies must be classified as “restricted mass market investments,” and promotions must include clear risk warnings. Advertisements or promotions that incentivize investment, such as “refer a friend” or “new joiner bonuses,” will be banned. Additionally, crypto promotions should be fair, clear, and not misleading. The aim of these regulations is to provide individuals with the necessary time and risk warnings to make informed decisions about cryptocurrency investments.
Hot Take: FCA Regulation Prompts Changes in Crypto Platforms
As the FCA prepares to implement new regulations for cryptocurrency promotions, Luno has taken proactive steps to comply with the upcoming rules. By temporarily halting the ability to invest for some UK customers, Luno aims to ensure compliance and protect its users. This move reflects the broader trend of crypto platforms making necessary changes to meet regulatory requirements. The FCA’s regulations, which include clear risk warnings and restrictions on promotional language, aim to safeguard consumers and promote informed decision-making. While these regulations may temporarily disrupt trading for Luno customers, the phased approach to reintroducing investment opportunities demonstrates the company’s commitment to providing a secure and compliant platform for its users.
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