The Financial Conduct Authority (FCA) is set to impose new rules on crypto advertisers to protect consumers.

From 8 October, firms promoting crypto must put in place clear warnings and ensure advertisements are clear, fair and not misleading, the watchdog said.

Firms marketing crypto to first time investors must also introduce a ‘cooling off’ period while ‘refer a friend’ bonuses will be banned.

The new measures follow the government’s plans to introduce legislation which addresses misleading cryptoasset promotions and to put them under the FCA’s remit.

Unveiled in early 2022, the government said the promotion of qualifying cryptoassets would be subject to FCA rules in line with the same standards that other financial promotions such as stocks, shares, and insurance products are held to.

Sheldon Mills, executive director, consumers and competition at the FCA said consumers should still be aware that crypto remains largely unregulated and high risk and that those who invest should be “prepared to lose all their money”.

“It is up to people to decide whether they buy crypto, but research shows many regret making a hasty decision,” Mills said. “Our rules give people the time and the right risk warnings to make an informed choice.”

The government also recently launched further crypto regulation plans aimed at bringing further confidence and clarity to businesses and consumers.

At the time, the government said it wants to regulate cryptocurrency in the same way it regulates traditional finance, with the goal of mitigating the risks and volatility that can occur in the cryptocurrency market.

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