UK Clamps Down On Cryptocurrency, Makes New Rules | READ DETAILS
Faith Ukanwa
Jun 08, 2023
UK Clamps Down On Cryptocurrency, Makes New Rules | READ DETAILS
Britain's financial regulator on Thursday tightened rules over the promotion and selling of cryptocurrency as it seeks to protect consumers.
READ ALSO: Pastra Arinze Etie Explains How Governor Otti is Ending Revenue Leakages in Abia State
The Financial Conduct Authority unveiled a package of measures for the industry, which has long faced criticism over the lack of oversight - and promises of high returns in a volatile marketplace.
READ ALSO: Tinubu Denies Sharing 'Jagaba' Rice In Some Northern States
Under the new rules, companies promoting crypto products or services in Britain must from October give a "clear warningÔÇØ that customers could lose money in "high-riskÔÇØ investments.
Marketing firms must also introduce a cooling-off period for first-time crypto investors.
READ ALSO: Bring Back Cashless Policy, Naira Will Increase Value - Yul Edochie Begs Tinubu
And the watchdog will also ban "refer a friendÔÇØ bonuses that are designed to incentivise crypto investing.
READ ALSO: EXCLUSIVE: DNA study shows many African-Americans have Nigerian ancestry
"Our rules give people the time and the right risk warnings to make an informed choice,ÔÇØ said Sheldon Mills, head of consumers and competition at the FCA.
READ ALSO: Akwa Ibom Governor approves promotion for 2,248 workers | DETAILS
The announcement comes after Britain introduced legislation earlier this year to bring crypto promotions under the scope of the FCA.
READ ALSO: Nigeria's Economy Set to Grow 4.7% in 2026 - Edun Projects Job-Rich, Investment-Led Growth
UK lawmakers are also demanding that crypto investments in Britain be regulated, in much the same way as the country's gambling industry.
Reacting to the FCA announcement, the director of operations at industry group CryptoUK, Su Carpenter, said the new rules could prevent fresh entrants.
READ ALSO: How CBN's New Policy Will Force Banks To Instantly Refund Failed ATM Transactions
"There is a risk that this solution will both unfairly concentrate market power for those firms which are already authorised and potentially encourage unauthorised firms to operate from outside of the UK,ÔÇØ Carpenter said.
READ ALSO: SH0CKING: Obiano, Soludo Will Fight To The Extent That....-Prophet Ayodele Reveals
That could, in turn, create "a competitive disadvantage for UK-based organisations and also potentially undermining consumer safeguardsÔÇØ, she added in a statement.
READ ALSO: 7 Online Money Traps Young Nigerians Are Falling Into
The FCA clampdown follows moves toward tighter regulation in the United States.
READ ALSO: Read How Ex-Governor Yari Forfeited $669,248 To Federal Government
The Securities and Exchange Commission on Tuesday sued crypto platform Coinbase, charging that the largest US digital currency trading platform made billions of dollars by "unlawfully facilitating the buying and selling of crypto asset securitiesÔÇØ.
READ ALSO: EXCLUSIVE: Major news events that shook July 2020
The SEC has this week also unveiled charges against Coinbase peer Binance and its founder Changpeng Zhao for numerous alleged securities law violations.
READ ALSO: Pastra Arinze Etie Explains How Governor Otti is Ending Revenue Leakages in Abia State
The news follows the spectacular failure of crypto exchange giant FTX in November, stoking concern over a market dubbed by some critics as the "Wild WestÔÇØ.
READ ALSO: Tinubu Denies Sharing 'Jagaba' Rice In Some Northern States
AFP
Related Stories
Nigeria's Economy Set to Grow 4.7% in 2026 - Edun Projects Job-Rich, Investment-Led Growth
Pastra Arinze Etie Explains How Governor Otti is Ending Revenue Leakages in Abia State
How Trump's Threat Triggered N2.8 Trillion Stock Market Crash In Nigeria - Investors Panic As Confidence Plummets
How CBN's New Policy Will Force Banks To Instantly Refund Failed ATM Transactions
Bring Back Cashless Policy, Naira Will Increase Value - Yul Edochie Begs Tinubu
7 Online Money Traps Young Nigerians Are Falling Into
""
— Faith Ukanwa