- The UK’s Financial Conduct Authority (FCA) proposes a major ban on crypto incentives.
- Crypto will be classified as “restricted mass market investments,” requiring clear risk warnings in promotions.
- Crypto firms must conduct due diligence to ensure fair, clear, and non-misleading promotions.
The UK’s Financial Conduct Authority (FCA) has recently proposed a major ban on crypto incentives, causing a significant impact on the world of crypto advertising. Under the proposed regulations, popular features like “refer a friend” bonuses and “new joiner” rewards for investing in crypto will no longer be allowed.
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The FCA aims to protect investors and create a level playing field in the crypto market by banning incentives offered by crypto firms. This move is intended to prevent potential risks associated with misleading marketing tactics and ensure fair practices within the industry.
As part of the proposed regulations, crypto will be classified as “restricted mass market investments.” This classification indicates that all promotions related to crypto must include clear risk warnings to inform potential investors about the associated risks and encourage informed decision-making.
The FCA expects crypto firms to conduct thorough due diligence and ensure that their promotions are fair, clear, and non-misleading. This requirement is designed to protect consumers and maintain the integrity of the crypto market.
The proposed ban on crypto incentives and the reclassification of crypto as “restricted mass market investments” reflect the FCA’s commitment to creating a safer and more transparent environment for crypto investors in the UK.
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