Britain’s financial regulator on Thursday tightened rules over the promotion and selling of cryptocurrency as it seeks to protect consumers.
The Financial Conduct Authority unveiled a package of measures for the industry, which has long faced criticism over the lack of oversight — and promises of high returns in a volatile marketplace.
Under the new rules, companies promoting crypto products or services in Britain must from October give a “clear warning” that customers could lose money in “high-risk” investments.
Marketing firms must also introduce a cooling-off period for first-time crypto investors.
And the watchdog will also ban “refer a friend” bonuses that are designed to incentivise crypto investing.
“Our rules give people the time and the right risk warnings to make an informed choice,” said Sheldon Mills, head of consumers and competition at the FCA.
The announcement comes after Britain introduced legislation earlier this year to bring crypto promotions under the scope of the FCA.
UK lawmakers are also demanding that crypto investments in Britain be regulated, in much the same way as the country’s gambling industry.