UK Crypto Firms Face Crackdown
UK Crypto Firms to Face Regulatory Clampdown as FCA Implements New Rules The UK's crypto industry is set to face stricter regulations as the Financial Conduct Authority (FCA) aims to address the "Wild West" landscape of crypto marketing. The FCA has announced new rules that will require crypto firms to implement a "cooling-off" period, allowing consumers to cancel their purchase within a specified timeframe.
Additionally, the FCA plans to ban "refer a friend" bonuses and mandate the inclusion of "clear risk warnings" to ensure that individuals buying cryptocurrencies fully understand the associated risks. Sheldon Mills, executive director at the FCA, emphasized the importance of providing people with sufficient time and appropriate risk warnings to make informed decisions.
The new rules will be effective from October 8th, prompting the UK's crypto sector to take action. Susannah Streeter, head of money and markets at Hargreaves Lansdown, praised the FCA for swiftly implementing these changes and enhancing consumer protection in the crypto industry.
Regulators worldwide have been increasing scrutiny and implementing stricter measures in the crypto sector. The US Securities Exchange Commission recently sued major coin exchanges Binance and Coinbase for violating its rules, while US industry leaders have shown interest in expanding operations overseas in response to the regulatory clampdown.
In the UK, discussions continue regarding the best approach to regulating the crypto industry as its adoption continues to grow. According to new data from the FCA, estimated crypto ownership has more than doubled from 2021 to 2022, with 10% of the 2,000 surveyed individuals reporting that they own cryptocurrencies.