Tom Metcalf
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The Financial Conduct Authority is proposing to restrict marketing of cryptoassets to only wealthy and experienced investors, part of a broader push to strengthen consumer protections around high-risk investments.
The British watchdog said in a statement Wednesday that it plans to categorize qualifying cryptoassets as “restricted mass market investments.” That means consumers “would only be able to respond to cryptoasset financial promotions if they are classed as restricted, high net worth or sophisticated investors.”
The proposal comes after the Treasury said on Tuesday that it planned to tighten rules on crypto advertising to ensure promotions are “fair, clear and not misleading.” Crypto has drawn the attention of regulators globally as a result of the volatile price movements of digital assets -- from Bitcoin and Ether down to memecoins such as Shiba Inu -- as well as the complexity of the products and lack of consumer protection.
Read more on the regulation of crypto ads
The FCA is seeking feedback on its proposals by March 23 and intends to confirm its final rules in the summer.
