The Financial Conduct Authority (FCA) of the United Kingdom ensured that it will introduce special guidelines for crypto companies regarding the promotion of crypto & related products.
The UK is a tech adaptive continent but not very friendly toward the crypto industry. In particular, The Financial Conduct Authority (FCA) is a responsible regulatory body in the UK, that regulates the crypto money market. FCA is a very strict agency against the crypto industry. In the past, FCA issued very few crypto licenses for the crypto companies to provide services for the Britain-based population.
On 1 August, the FCA agency published its guidelines for all businesses & companies to reveal the risks associated with their product offerings. In short, the FCA agency forced the companies to tell the whole degree of risks associated with their product & services to the users openly. Through the released guidelines, FCA aimed to protect the UK-based citizens, which are taking risks with their funds.
However, FCA didn’t mentioned the crypto industry or any crypto company but confirmed that rules are equally applicable to all types of businesses, which bear significant risk factors with their offerings. New guidelines will also stop companies from promoting bonus or reward-like services, which includes the prohibition of referral systems.
This regulatory body also confirmed that they will release separate & dedicated advisory guidelines for the crypto companies, to prohibit the promotion of risky investments or assets. So here the issued guidelines will be applicable to companies and businesses which are providing risky element-backed services.
“Crypto remains high risk so people need to be prepared to lose all their money if they choose to invest in crypto assets.”
Sarah Pritchard, Executive Director at FCA, said that FCA aimed to bring real confidence among the investors with the surety that they understand the risk associated with their investment.
“We want people to be able to invest with confidence, understand the risks involved, and get the investments that are right for them which reflect their risk appetite.”