UK will apply new crypto regulation in October

The new regulations that will govern the trading of digital assets in the United Kingdom will come into force on October 8. The Financial Conduct Authority (FCA) has stressed that companies that do not adhere to the rules will face penalties of up to two years in prison.

The regulatory body establishes that October 8 is the deadline for all crypto companies to be registered in its financial promotions’ regime.

The FCA has made all the pertinent calls and contacts with crypto companies in order for them to comply with the new regime of financial promotions in the country.

By the deadline, all companies in the crypto sector must have their regulatory permits after having completed the necessary procedures before the FCA.

The entity clearly establishes that “in the event of refusing to comply, those responsible for the crypto companies in question will resort to a criminal offense”, with a penalty of two years in prison.

Also, according to the FCA, the requirements that companies must meet to legally offer cryptocurrencies in the United Kingdom can be summarized in four: “first, an authorized person communicates the promotion to potential investors; second, an unauthorized person communicates the promotion, but an authorized person finally approves it; third, an FCA-registered crypto business communicates the promotion to any potential investors, and the latter option facilitates the promotion by fulfilling the conditions of an exemption in the Financial Promotion Order.”

Any promotion made outside the rules “will be in breach of section 21 of the Financial Services and Markets Act 2000 (FSMA), which could also mean up to 2 years in jail, a fine or both.”

M.Pino

Source: bitcoin.es

(Reference image source: Amjith S, Unsplash)

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