The UK Financial Conduct Authority (FCA) has indicated its willingness for a certain amount of leeway for registered crypto firms to adhere to forthcoming rules.
The regulator says that registered or authorized firms may “apply for flexibility” on implementing a cooling off period when other rules go into effect next month on October 8, 2023.
The UK aims to become a top digital asset hub but this includes clearly defined regulations. Part of the change includes marketing rules that are aligned with existing rules for high-risk investments.
The FCA Director of Consumer Investments at the FCA, Lucy Castledine, says crypto firms must promote offerings clearly, fairly, and honestly while providing risk warnings that are comprehensible.
“As a proportionate regulator, we’re giving firms that apply a little more time to get the other reforms requiring technology and business change right. We’ll maintain our close eye on firms during this extended implementation period. We are concerned by the failure of many overseas and unregulated crypto firms to engage with us on the new rules. Come 8 October, we will be taking action against firms illegally marketing to UK consumers.”
The FCA highlighted the fact that after October 8th if you break the rules you are committing a criminal act.
The FCA has created some examples of how authorized firms must comply with the rules here.