On July 4, the Economic Crime and Corporate Transparency Bill successfully passed its third reading in the UK's House of Lords. The bill, designed to combat financial crime and protect citizens, will now undergo further consideration of amendments before it can become law by royal assent. If the bill gets the green light, authorities will gain the power to disclose cryptocurrencies involved in financial crimes.
Moreover, the Financial Conduct Authority (FCA), Britain’s top regulator, has thrown a reminder at all domestic and foreign crypto-slinging firms in the UK, saying that they must comply with the new promotional rules by October 8, 2023. After that deadline, these crypto entities need to conduct promotions through an authorized person and make sure their products meet the FCA's anti-money laundering requirements. Failure to comply could result in some serious consequences, like a cozy two-years stay in prison, hefty fines, or both.
In addition, the FCA is also eyeing the world of crypto asset marketing, introducing new regulations to keep things fair, transparent, and not fishy. These rules even bring a "cooling-off" period for rookie investors, ban "refer a friend" bonuses, and demand clear risk warnings and transparent advertisements. Crypto firms better step up their game and make sure their clients have the appropriate knowledge and experience to invest in crypto.
The UK's proactive approach to addressing the potential risks of cryptocurrencies reflects a global trend.
Learn more about crypto regulation around the world