Crypto Regulation
UK’s FCA Delays the Deadline for Crypto Reforms
UK’s FCA delays crypto reform implementation due to requests from unregulated and foreign firms unfamiliar with new rules and regulations.
Financial Conduct Authority (FCA) or the United Kingdom announces the delay in the implementation of crypto reforms. The director of FCA disclosed that he has been approached by many unregulated and foreign crypto firms for the delay. They claimed not to be properly engaged with the new set of rules and regulations, so they needed some time before the implementation. Keeping such a scenario in mind, FCA’s director delayed the implementation of crypto reforms.
FCA’s Regulations to Be Implemented by Next Month
FCA’s new set of crypto regulations will kick in the next month by which all the crypto firms will have to comply. Following the new rules, all the crypto firms will have to be fair and clear in marketing by labelling even the associated risk factors. Moreover, incentive schemes like “refer a friend” will also be forbidden.
It is made obligatory for all crypto firms to comply with the newly advertised rules and regulations by October 2023. The regulator advised the customers to make sure that they implement the technical features as well i.e., the cooling-off period.
Also Read: US IRS and Treasury Propose Regulations for Crypto Brokers
Moreover, he advised that crypto firms ought to act upon the given instructions by the 8th of January, 2023. They said that the given timeframe is enough period for the consumer to reconsider the investment decision without going through legal penalties.
Proposed Agenda
Lucy Castledine, the director of the UK’s consumer investment shared his proposed agenda of the new rules and regulations. All the crypto firms are directed to present fair, clear and honest terms and conditions to the users and to clearly mention the risk factors as well.
Lucy said that proportionate regulatory authorities of the United Kingdom have delayed the deadline date for crypto reforms to be implemented. The main cause of the delay is to let the crypto firms have the proper tools, awareness, understanding and other necessities to follow the newly proposed crypto reforms.
