Beginning in October, the UK Financial Regulator will require a 24-hour “cooling-off” period for cryptocurrency marketing.

Huge modifications to the way digital assets can be marketed in the UK now require cryptocurrency businesses to provide buyers with a 24-hour “cooling-off period.” Before they can execute their deal, new investors must wait an entire day.

Up to one in ten UK adults, according to the government, now hold cryptocurrency. Failure to comply might result in up to two years in prison, a fine, or both for business owners. There will be a ban on “refer a friend” advertisements, and all others must be “clear, fair, and not misleading.”

The regulations, which are scheduled to go into effect on October 8th, will apply to interchangeable and transferable crypto assets, such as Bitcoin and other digital currencies.

This indicates that, aside from a prohibition on providing them as a reward for investing in cryptocurrencies, purchases of “non-fungible tokens (NFTs)” will not be subject to the new advertising regulations. More regulation in the area has been demanded.

The qualities of cryptocurrency “more strongly resemble gambling than an economic service,” according to a committee of MPs last month. Additionally, the gambling-assistance organisation GamCare reported receiving calls from more than 300 people in the preceding two years who had difficulty investing in cryptocurrencies and other types of online financial markets.

After the authorities passed legislation giving them control over how digital assets are advertised, the “Financial Conduct Authority” is now launching the adjustments.

All businesses marketing cryptocurrency in the UK will be subject to the regulations. Additionally, the FCA will “take strong action” against individuals who flout the law.

The trade association agreed with “the principle” of the “cooling-off period” but queried its length, according to CryptoUK operations director Su Carpenter.

We would like evidence-based research on the justification for this suggestion, she said.

“We aim to promote a competitive and egalitarian atmosphere for the crypto-asset business so it may safely expand and innovate while operating within the proper safeguards and providing knowledge and data to all customers.

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