The Financial Conduct Authority (FCA) of the United Kingdom (UK) has issued a set of warnings about the common issues existing in the cryptoindustry. This warning was issued concerning the safety concerns of the crypto customers and their digital assets. FCA’s warning addresses the commonly spotted flaws regarding the promotions of cryptocurrencies. FCA has decided to watch over the crypto promotions in the UK with new and advanced marketing analytical tools and systems.
FCA Warns Non-Compliant Crypto
UK’s Financial Conduct Authority (FCA) has highlighted the specific areas of the crypto industry where it is going to impose new rules and regulations. To do so, FCA has shared a list of crypto alerts for the non-compliant crypto entities and warned them to cope with addressed issues.
According to the FCA’s given instructions and improvised law, all the crypto firms are asked to do fair crypto marketing. Crypto firms must make sure that clients are aware of the associated risks or the purchasing assets, so firms should give proper guidelines in the market strategies. Since the beginning of October, FCA has been observing the market and raised concerns over three issues;
- Misleading and false claims about the security and safety of digital assets without mentioning the possible risks.
- Possible risk warnings are not mentioned and if mentioned, mentioned in short fonts and with such colour schemes which are hard to read and understand.
- Firms do not mention the complete set of guidelines related to the promoted assets or products.
FCA to Hunt Down Illegal Promotions and Activities
The FCA is hunting down the companies who are illegally promoting cryptocurrencies to UK consumers. They’ve issued 221 alerts to non-compliant firms. FCA administration has also advised people to check the Warning List to make smart crypto investments and not rely on misleading promotions.
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