The Financial Conduct Authority (FCA) has told crypto businesses in the UK that changes to the way crypto advertisements are regulated will be introduced later this year.
The changes include serious penalties for offenders, with two-year prison sentences meted out to any company official that fails to comply.
This comes in the context of changes already announced by the Treasury, which told companies that if they already meet the FCA’s anti-money laundering (AML) safeguards they can issue their promotions until a new crypto regulatory framework is passed in 2024.
Moving forward, the government is expected to act tougher on crypto, arguing that any implementation periods for changes in crypto regulation and advertisement will be cut from the current six months to four months only. The FCA will also be vested with additional powers to help tackle crime in the sector.
The regulator will have enforcement and supervision powers insofar as AML compliance of crypto businesses goes. The regulator will also be able to request a business to take down their website if it is deemed to be violating the laws that bind the industry in the country.
The latest changes in regulation are at least partially motivated by the collapses of FTX and Terraform Labs, two prominent companies from the sector that unleashed a chain reaction in the crypto sector and wiped trillions off of its market value.
The UK and the US are among some of the jurisdictions to have decided and step up their efforts to regulate the industry and bring it into a cohesive framework that businesses and regulators can follow.
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