The UK is taking the lead on bringing regulations to the crypto ecosystem
The safeguarding of consumers is the key priority for Britain’s financial regulator, as evidenced by the recent establishment of guidelines concerning the marketing and transaction of cryptocurrency. The financial industry has been under scrutiny for its lack of regulation and high-risk investment schemes that often result in significant losses for consumers. As a result, the Financial Conduct Authority (FCA) has introduced a set of regulatory measures to address these issues specifically in the realm of cryptocurrency.
Effective immediately, companies advertising crypto-related products in the UK must provide a clear warning that there is a risk of financial loss when investing in this volatile market. Additionally, these entities must classify their services as high-risk and ensure that customers are aware of the potential dangers before investing.
To protect new investors in the crypto market, brokerage firms ought to consider implementing a period of caution. Moreover, authorities intend on prohibiting investment funds that incentivize referrals for cryptocurrency investments.
Britain has taken a step towards regulating crypto promotion by bringing it under the authority of the FCA. This development follows the enactment of legislation earlier this year. Furthermore, both the gambling industry and lawmakers in the UK are also pushing for regulations on crypto investments being made within the country.
CryptoUK’s Chief Operating Officer, Su Carpenter, expressed concerns over the FCA’s announcement, stating that the imposed regulations may discourage new players in the industry, ultimately leading to negative impacts on existing companies and customer loyalty.
The US still isn’t ready to introduce regulations, but is willing to attack crypto companies. On Tuesday, the Securities and Exchange Commission filed a lawsuit against Coinbase, the biggest US digital currency platform, alleging that the company has earned billions of dollars by unlawfully enabling customers to buy and sell securities related to crypto assets. It also accused Binance of multiple securities violations.
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