LONDON, Jan 19 (Reuters) – Britain’s financial watchdog said on Wednesday it plans to introduce restrictions on marketing cryptoassets and other high-risk investments.
A surge in investment scams, particularly online since the coronavirus pandemic began unfolding in 2020, has prompted the regulator to take action.
The Financial Conduct Authority said the draft rules, put out to public consultation, prepare the ground for the government to bring in promotions of cryptoassets under the watchdog’s remit.
“When it does, the FCA plans to categorise qualifying cryptoassets as ‘Restricted Mass Market Investments’, meaning consumers would only be able to respond to cryptoasset financial promotions if they are classed as restricted, high net worth or sophisticated investors,” the FCA said in a statement.
“Firms issuing such promotions would have to adhere to FCA rules, such as the requirement to be clear, fair and not misleading.”
Reporting by Huw Jones, Editing by Iain Withers