British regulator threatens imprisonment for unauthorized crypto advertising

Crypto-related companies should take into account the new restrictions on promoting financial products, with offenders facing up to two years in prison, according to a заявлении FCA.

The regulator said the regime is not finalised yet. The rules will align with those applicable to high-risk investments.

Financial promotions must be clear, fair, and not misleading. 

A 24-hour cooling-off period will be provided for clients, allowing them to reconsider their decision.

«This regime will apply to firms offering crypto assets to UK consumers, — regardless of whether they are based abroad and the technologies they use to promote them», — according to a statement.

In August 2022, the FCA approved stricter rules to curb misleading advertising related to high-risk investment products. The guidance did not reference cryptocurrencies.

Earlier the UK’s Advertising Standards Authority began considering the option of adding a disclaimer to advertising related to digital assets.