FCA to Launch New Crypto Rules, Bans Incentives

The FCA said in its policy statement:

Even when the financial promotions regime comes into force, cryptoassets will remain high risk and largely unregulated.

Consumers should only invest in cryptoassets if they understand the risks involved and are prepared to lose all their money. Consumers should not expect protection from the Financial Service Compensation Scheme (FSCS) or Financial Ombudsman Service if something goes wrong.”

The measures are being put in place to ensure that new investors who want to buy crypto understand the risks.

In order to make effective investment decisions, the regulator said it wants consumers to obtain timely, quality information. They also don’t want consumers to be misled, pressured, or inappropriately incentivised, resulting in them investing in products that do not meet their needs.

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