The UK's Financial Conduct Authority (FCA) has issued a warning to cryptocurrency industry participants about the need to comply with its advertising regime, which will come into force next October 8, 2023.
According to the regulator, violators may face criminal liability, including fines and a prison sentence of up to two years.
In the case of cryptocurrency firms based abroad, advertising will be legal if their organizer is an FCA-registered market participant, has received approval from a similar firm, has filed an application with the FCA's Money Laundering and Terrorist Financing Department or complies with the exemptions provided by the Financial Services and Markets Act.
Advertising campaigns in general must comply with the regime applicable to promoters of traditional financial services.
This provides, among other things, for "specific risk warnings" and the presence of safety features for inexperienced investors, such as a 24-hour "cooling-off period."