thecoinrise.com
The United Kingdom’s Financial Conduct Authority (FCA) recently instructed the companies involved in marketing high-risk investments to provide clearer and more prominent risk warnings to the public. It is also going to ban certain investment incentives like refer a friend bonus.
Stronger regulations have been finalized by the FCA to help fight misleading advertisements that encourage investing in high-risk goods, according to a note released on August 1. The concern of “a large percentage of people” not grasping the risks embedded into some types of investments has led the regulator to attempt to decrease the number of people investing in high-risk goods.
What does it imply for the upcoming crypto regulations by FCA?
However, FCA has shed some hope light for cryptocurrency investors about its current stance toward the industry. Notably, the regulator has exempted crypto investment from the new guidelines. However, as TheCoinRise reported, FCA said in May that it would keep UST depegging in mind while drafting crypto regulations.
Moreover, the announcement classifies cryptocurrency as a high-risk asset as well. This implies that the upcoming regulations will probably match the ones that were indicated in the new guidelines. FCA states:
“Crypto remains high risk, so people need to be prepared to lose all their money if they choose to invest in crypto assets.”
Moreover, in March, the UK financial watchdog was searching for crypto experts in its crypto department and recently hired Hong Kong’s Securities and Future Commission CEO Ashley Adler as the new FCA chair.
Notably, the FCA has considerably increased its scrutiny on financial promotions and altered/removed 4226 advertisements throughout this year ending in July 2022.
The Financial Services and Markets Bill was presented to the UK Parliament on July 20. The Banking Act of 2009 and Financial Services (Banking Reform) Act of 2013 will be amended to include “digital settlement assets” (DSAs), giving the Treasury the authority to regulate DSAs and stablecoins.