Alterations to UK legislation, which brought cryptocurrency asset promotions within the purview of the Financial Conduct Authority (FCA), came into force recently.
During day one of the new legal structure, the UK’s financial watchdog issued a total of 146 individual alerts regarding promotions for crypto assets.
In a statement following the alerts, the regulator confirmed that it now expects UK enterprises, including payments firms, stores selling apps, social media platforms, domain name registrars and search engines, to review the advisories issued, and act by playing their role in safeguarding British consumers from being faced with illegal investment promotions.
While wealth managers assist clients with portfolio management and retirement planning, they can also be counted on for independent financial advice in Shropshire, Cheshire, and other counties. As independent financial advisors (IFAs), managers can provide investors with unbiased financial guidance on potential assets, and even help them avoid investment scams.
Before making an investment in crypto currency, the FCA is urging consumers to check its official Warning List. The index is designed to assist investors in understanding when a company’s promotions are breaking UK law.
The FCA uses a risk-based method to compile its list, so consumers should be aware that not every firm that raises concern may be included immediately. However, the regulator will continue to update the list as it identifies new firms that are illegally communicating promotions selling cryptocurrency assets, and failing to adhere to the new regulations.
In its statement, the FCA also reminded consumers that crypto assets were considered a high-risk investment vehicle, and should be treated as such.
