The ebb and flow of crypto regulations have been a fixture since the very beginning of the DeFi ecosystem. From the most liberal to the most stringent, every country and its regulators have constantly grappled with streamlining the market. In the United Kingdom, this dialogue has taken a pivotal turn, with the latest guidelines introduced by the Financial Conduct Authority (FCA) set to commence on the 8th of October.
As prominent exchanges announce their withdrawal from the UK, it might seem like the tides are turning unfavorably for the UK’s crypto enthusiasts. Yet, amidst the uncertainty, an underdog emerges as an exchange and a cornerstone of stability for those seeking continuity.
A Changing Tide: What are the New FCA Rules?
It’s essential first to understand the changing dynamics of the FCA regulations. The new rule’s primary focus is crypto exchange marketing activities. Aimed at protecting consumers from misleading promotions and ensuring financial stability, these rules represent a drive towards more accountability.
Moreover, one significant highlight is the ’24-hour cooling-off period’. This period entails that any new customer who deposits an exchange after the 8th of October will face a grace period during which they won’t be allowed to deposit. This ruling is dual-edged – while it provides a cushion for impulsive decisions, it also poses a challenge for those eyeing real-time market opportunities.
In addition to focusing on marketing activities and introducing the ’24-hour cooling-off’ period, the new FCA rules bring another major change. Influencers and Key Opinion Leaders (KOLs) are barred from sharing ‘refer-a-friend’ links or guiding people to cryptocurrency exchanges. Their role is now strictly restricted to providing unbiased and educational content.
Lucy Castledine, Director of Consumer Investments, shed light on the reason behind these changes:
“From this October, crypto firms must market to UK consumers clearly, fairly, and honestly… We are concerned by the failure of many overseas and unre
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Author: News Desk
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