The UK Financial Conduct Authority (FCA) has said crypto company executives could face up to two years in prison for failing to comply with advertising requirements for their products and services.
The FCA clarified that a bill on financial markets is currently under consideration in Parliament, which partially affects cryptocurrencies. The regulator proposed that all local and foreign companies working with crypto assets must obtain permission from the agency to advertise their services without fail.
Firstly, a person who has received FCA permission can advertise cryptocurrencies. Secondly, cryptocurrency services can be advertised by any person or firm that is approved by an FCA licensed person. Thirdly, cryptocurrency companies registered with the FCA in accordance with the Anti-Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 will be able to freely promote their services.
The regulator said that any promotion of cryptocurrency products without meeting these requirements would be considered a violation of the Financial Services and Markets Act of 2000. In addition to closing the organization’s website and public warnings, violators face penalties of up to two years in prison. The FCA noted that legislative changes are needed to implement these rules.
Recently, the British regulator said that the majority of crypto companies that have applied for registration do not comply with AML requirements. Earlier, the FCA urged the public not to trust cryptocurrency influencers, as in the event of a loss of funds, investors will not be able to count on the protection of their rights.
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