UK's FCA Gives Crypto Firms More Time to Follow its Marketing Rules.

The UK's Financial Conduct Authority (FCA) will give some crypto businesses extra time to meet new advertising rules. Starting next month, these firms need to advertise clearly with risk warnings. Offers like 'refer a friend' bonuses will not be allowed. 

While these rules must be in place by October, the FCA announced a grace period until Jan. 8, 2024, for certain technical changes, such as a "cooling-off period." This means customers get time to think about their decisions without any cost.

Lucy Castledine, the director of consumer investment, emphasized: “Crypto firms need to market honestly to UK customers and give clear risk alerts. We're allowing some extra time for firms to adjust, but we'll be watching them."

The rules will cover ads on websites, apps, social media, and more. Even companies outside the UK must follow these rules if they target UK people. The FCA is worried as many overseas crypto companies are not responding to these new rules.

Once the new rules start in October, crypto companies can market in the UK only if they follow one of four legal ways. This could be getting approval or having certain exemptions.

Last year, the FCA labeled crypto businesses as “high-risk investments” because of their unpredictable prices. The FCA has warned before: only invest in crypto if you understand the risks and can afford losses.

If companies don't follow the rules after October, they might face big fines or even jail.