CryptoUK body calls out lawmaker for terming crypto as gambling

Breaching UK’s crypto advertising laws could lead to imprisonment

UK’s crypto advertising laws are so strict that firms must be careful because breaching them could lead to 2 years in jail. When promoting their services or even a token, there are certain requirements that the company must meet. These requirements were decided by the Financial Conduct Authority of the United Kingdom and approved by the parliament. All firms in the country need to follow them when showing any ads to UK citizens.

UK’s crypto advertising laws

Breaching UK's crypto advertising laws could lead to imprisonment

The FCA said that firms must be ready to follow this new regime. Crypto companies must act on these new laws now, so they can legally operate and advertise in the country. Under this new regime of the authorities, there are 4 ways a company can promote its services to customers in the UK.

  1. The promotion or advertisement is being conducted by someone who is authorized by the FCA.
  2. The promotion itself is approved by an FCA-authorized person when it is being done by an unauthorized individual. Very soon, there will be a regulatory gateway for firms which they need to pass to get their promotions approved.
  3. In accordance with the Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations of 2017, the promotion is distributed by a crypto asset company registered with the FCA.
  4. The promotion conforms with the requirements of the Financial Promotion Orders in all other respects.

Any crypto firm that promotes outside of these rules and laws will be charged with a breach of the Financial Services and Markets Act 2000 and might face up to 2 years in prison. The FCA has made it clear that they will take strict action against any lawbreakers In fact, in case of a breach, it might even lead to having the company’s website taken down, facing public warnings and other actions.

Why was this important?

Crypto ads can be misleading a lot of times. This can make the viewers believe that they will make a lot of money by investing somewhere or using a firm’s service. However, with these new laws, there will be censorship mechanisms to prevent such ads from going live, saving investors from losing their money.

What are your thoughts as the FCA says breaching UK’s crypto advertising laws might lead to jail? And do you think this will reduce scams and frauds? Let us know in the comments below. And, if you found our content informative, share it with your family and friends.

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