Cryptocurrency companies will have to give customers a 24-hour “cooling-off” period to make sweeping changes to how they sell digital assets in the UK.

New investors have to wait a full day to complete the transaction.

The government now estimates that 1 in 10 adults in the UK owns some form of cryptocurrency.

Company managers who do not comply are subject to up to two years in prison and/or a fine.

"Refer a friend" ads are prohibited, but other ads must be "clear, fair and not misleading."

The rule is scheduled to go into effect on October 8 and will apply to transferable and fungible crypto assets, including digital currencies such as Bitcoin.

This means that purchases of non-fungible tokens (NFTs) will not be subject to the new advertising rules, except for the ban on offering non-fungible tokens (NFTs) as an incentive to invest in cryptocurrencies. increase.

'Robust action'

There are calls for more regulation in this area.

Last month, a panel of parliamentarians said the characteristics of cryptocurrencies were "more like gambling than financial services." The gambling helpline charity Gumcare also told BBC News that it has spoken to more than 300 people over the past two years who have struggled to invest in cryptocurrencies and other forms of online financial markets.

The Financial Conduct Authority is introducing this change after the government enacted legislation authorizing how digital assets are advertised.

This rule applies to all companies marketing cryptocurrencies in the UK. And the FCA will take "strong action" against anyone breaking the rules, including shutting down the website.

'High risk'

Sheldon Mills, chief executive of consumer and competitive affairs, said his research found that "many people regret their hasty decisions."

"It's up to people to decide whether to buy cryptocurrencies or not," he said.

“Our rules give people time and appropriate risk warnings to make informed decisions.

"Investors should be prepared to lose all their money.''

'Appropriate safeguards'

CryptoUK operational director Sue Carpenter said the trading organization agreed to the “principle” of the cooling-off period, but questioned its duration.

"We welcome evidence-based insights into the rationale for this proposal," she said.

“We are committed to keeping the crypto industry competitive so that it can continue to grow and innovate safely, while maintaining appropriate safeguards and providing education and information to all consumers. We want to foster a positive and equitable environment.”

Work with members to make recommendations and consult with them to ensure results. ”

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