The Financial Conduct Authority (FCA, the UK financial regulator) announced this Thursday, the 8th, new rules for trading crypto assets, which will come into effect on October 8th this year. Among them, companies that trade crypto assets must ensure that investors have the right knowledge and experience to invest in crypto.
Additionally, crypto advertisers must post warnings about potential risks and ads must be clear, fair, and non-misleading. FCA rules follow UK government law.
“Our rules give people the time and proper risk warnings to make an informed choice,” said Sheldon Mills, executive director of consumer and competition for the FCA. According to him, consumers should be aware that cryptocurrency is still unregulated and very risky: “Anyone who invests should be prepared to lose their money,” he says.
Research from the FCA shows estimated crypto ownership has doubled from 2021 to 2022, with 10% of the 2,000 people surveyed claiming to own crypto.
The FCA is still consulting firms promoting cryptocurrencies, which are expected to respond by August 10, with further guidance likely to come.
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