The UK's Financial Conduct Authority (FCA) has warned business owners that they could face real jail time if they are found distributing illegal advertisements for cryptocurrency products and services. The financial supervisor warns: any organisation that violates the rules exposes its owners to the risk of serious consequences.
Cryptocurrency companies in the UK have been notified of potential new rules in this area. The FCA has warned that violations by firms could lead to their managers being sent to prison for up to two years. Although the legislation has not yet been formally approved, it is in its final stages.
Supervisory officials said that the rules for digital currencies would be similar to those for other high-risk investment instruments. It was also said that advertising campaigns should be clear and honest, and buyers should have a minimum of 24 hours to think before making any investment.
"This law will apply to all organisations that sell crypto assets to UK customers, regardless of where the company is based or what technology is used to advertise them," the FCA said in a statement. "These measures will help ensure firms are able to create legal cryptocurrency advertising campaigns aimed at UK citizens."
New laws regulating operations in the crypto sector were proposed last year, and last week government officials mentioned that changes would probably be made when it comes to registering cryptocurrency companies for advertising purposes. Many people involved in finance were cautious about the proposal.