Regulatory Crackdown on the ‘Wild West’ Cryptocurrency Industry Faces Delay

Introduction

A crackdown on cryptocurrency has been delayed. The Financial Conduct Authority said stricter regulation about marketing crypto would come into force next month but firms can apply for more time to comply with rules, such as a 24-hour cooling-off period.

Delay in Implementation

The FCA has announced that companies could be given until January 8 to comply with the new regulations. The rules were originally scheduled to take effect from October 8.

Impact on Campaigners

The delay is a blow to campaigners who have argued that protections must be brought in immediately to help vulnerable consumers.

FCA’s Criticism

The FCA has criticized some firms for failing to engage with them on the rules. Lucy Castledine, director of consumer investments, stated that action will be taken against firms illegally marketing to UK consumers.

Punishments for Breaches

Breaches of the rules, which aim to make marketing of crypto assets clearer and more accurate, and ban incentives like ‘refer a friend’ bonuses, could be punished by an unlimited fine or up to two years in prison.

Warning to Buyers

The FCA reiterated that crypto assets are high-risk and buyers should be prepared to lose all their money.