New advertising legislation announced by the UK’s Financial Conduct Authority (FCA) will mean that companies marketing crypto products to British investors must change how they sell to first-time investors. The financial watchdog’s rules require crypto firms to introduce a cooling off period of 24-hours to new buyers.
The regulator recently announced the revised rules to govern crypto asset marketing which will become effective later this year. From then on, first-time cryptocurrency investors will face a delay between their asset purchase request and the completion of the transaction.
During this period, investors will not be able to receive any direct offers of financial promotions until they confirm their wish to continue with the purchase after the 24-hour period has passed.
In an official press release, which accompanied the FCA announcement, executive director for the regulator, Sheldon Mills commented that while people should have freedom to purchase crypto, they should also be protected from what he referred to as “making a hasty decision.”
Additionally, marketing schemes like “refer a friend” will also be banned under the new rules. Crypto companies will need to make sure that buyers have the correct experience and knowledge to invest in cryptocurrency, implemented by a preliminary test for first-time investors.
UK consumers with an interest in digital assets who are unsure of the risks involved, often seek out financial advice in Chester, Birmingham, and other cities. Experts in portfolio management, wealth managers can clearly explain financial products like cryptocurrency to their clients and help them make an informed decision.
