The Financial Conduct Authority has given crypto firms “breathing space” on a number of key new rules today as it prepares for a clampdown on the marketing of digital assets later this year.
The watchdog laid out a framework earlier this year to rein in the promotion of crypto products, including banning “refer-a-friend” bonuses and rolling out 24-hour cooling-off periods.
Firms will be subject to new rules from 8 October. However, in an update today, the regulator said it would offer firms a grace period on some of the tougher rules.
The 24-hour cooling-off period, in which customers will not be able to access crypto products, will be among the rules that firms will have until the 8 January to implement.
“The FCA has signalled that in response to industry readiness it will consider giving cryptoasset firms more time to implement certain changes, for instance a 24-hour cooling off period,” the regulator said in a statement.
Analysts said the move gave firms some “breathing space” ahead of the sweeping clampdwon.
“The Financial Conduct Authority shot out of the traps, harnessed with new powers and raced ahead with new rules to give consumers extra protection in the crypto Wild West, but it’s now recognised some crypto firms will struggle with the deadline which is fast approaching,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
“Crypto firms selling to UK consumers were warned back in February that they would need to get ready for regime change, but as the clock ticks down, the FCA is now willing to give some companies extra time to get their back office to deal with changes which will require more technical tinkering.”