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Only crypto companies adhering to AML safeguards are permitted to advertise in the UK;

British financial watchdog advised cryptocurrency companies on Monday to prepare for an upcoming change in the law governing advertising, stating that any violations by firm leaders might result in up to two years in prison.

The FCA said in a statement on Monday that "all cryptoasset firms marketing to UK consumers, including firms based overseas, will soon need to comply with the new UK financial promotions regime".


"Firms must start preparing now for this regime. We will take robust action against firms breaching these requirements."

The watchdog emphasized that customers should be ready to lose all of their money if they want to invest in cryptoassets and that these investments remain very risky.


"There is unlikely to be any compensation under the Financial Services Compensation Scheme for consumers who lose money," it was said.


The British finance ministry announced last week that it would introduce secondary legislation this year to permit cryptocurrency businesses that adhere to the Financial Conduct Authority's anti-money laundering safeguards to run their own promotions until new crypto regulation is introduced, which is likely to happen in 2024.


Currently, a company with full FCA authorization must approve the advertising.


The government also announced that it would shorten the transitional period from six months to four months once secondary legislation has been established by parliament.


Additionally, AML-compliant cryptoasset enterprises that promote cryptoassets will be subject to the FCA's supervision and enforcement powers, which include the ability to order a business to take down its website.

By fLEXI tEAM

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