UK introduces new rules for promotion of high-risk assets; crypto in the crosshairs

The UK’s Financial Conduct Authority (FCA) has announced stricter rules on the marketing of risky investment products, but the new rules still do not apply to cryptocurrency promotions, according to a press release dated August 1. Is not.

According to a press release, the FCA is waiting for legislation to be passed to see how the promotion of cryptocurrencies falls within its mandate before publishing final rules for the industry.

According to regulators, cryptocurrencies are high-risk assets and investors should be prepared to lose all their money if they invest in them. It follows the same approach as the new rules introduced for assets.

Under the new rules, companies must clearly and conspicuously put up risk warnings, but incentives to invest like referral systems are prohibited.

Rules are provided as part of the FCA. Consumer investment strategy To reduce the number of people investing in risky assets, regulators said. The FCA’s action follows concerns that a significant number of high-risk asset investors do not adequately understand the risks involved and do not consider losing money to be one of them.

FCA is actively involved in financial promotion this year. As of July 2022, FCA has intervened in 4,226 of his ads and forced them to amend or withdraw.

FCA Executive Director Markets Sarah Pritchard said:

“We want people to invest with confidence, understand the risks involved, and make the right investments that reflect their appetite for risk.”

Rising costs of living may push people to seek higher returns through riskier investments, so it’s more important than ever to see appropriate risk warnings on risky financial instruments, Pritchard said. has become important to