Regulations in the UK would affect cryptocurrency companies

The UK Financial Conduct Authority has proposed a new financial promotion regime for cryptocurrency companies operating within and outside the region. If approved, executives of these companies could face up to two years in prison for failing to comply with the requirements.

The FCA requires all cryptocurrency companies to be authorized to advertise their services or have an exemption under the Financial Promotion Order. There are currently four ways to market crypto assets to UK consumers: through an FCA authorized person, approval by an FCA authorized person, registration with the FCA under anti-money laundering legislation, and compliance with exemption conditions in the Financial Promotion Order.

Any promotion made outside these avenues would be in breach of the Financial Services and Markets Act 2000 and could carry prison terms. In addition, infringing companies could face measures such as removal of their website, public warnings, and other enforcement measures.

The FCA indicated that it will wait for “relevant legislation” to publish “final rules” for crypto asset promotions, indicating that the financial promotions regime could change or be updated.

In conclusion, cryptocurrency companies operating in the UK or promoting their services to UK clients should prepare to comply with the requirements proposed by the FCA. While the legislation is not yet definitively established, it is important to be aware of any updates or changes in the future.

K. Tovar

Source: Diariobitcoin

(Reference image source: Arisa Chattasa, Unsplash)

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