UK Financial Regulator to Limit Crypto Ads to Sophisticated, Wealthy Investors

The U.K.'s fiscal services regulator plans to tighten restrictions crypto-asset advertising aft the authorities gives it accrued powerfulness to modulate the manufacture and support investors who whitethorn not afloat recognize the risks they are taking on.

• The Financial Conduct Authority (FCA) said it plans to classify crypto assets specified that consumers would beryllium capable to respond to promotions lone if they are precocious nett worthy oregon blase investors.

• It besides intends to prohibition incentives specified arsenic refer-a-friend and new-joiner rewards.

• "Too galore radical are being led to put successful products they don’t recognize and which are excessively risky for them," Sarah Pritchard, the FCA's enforcement manager of markets, said successful a statement.

• The authorities began consulting connected a projected model for regulating crypto promotions successful 2020. Since then, the Advertising Standards Authority (ASA) has stepped successful to prohibition misleading ads connected a fig of occasions. On Tuesday, the Treasury said it plans to present legislation to fortify the rules governing crypto ads and manus the FCA the powerfulness to modulate the industry.

• The FCA asked for feedback connected the proposals by March 23, and said it expects to corroborate last rules by mid-year.