The UK’s Financial Conduct Authority (FCA) has revealed that many cryptocurrency firms are failing to comply with its new promotional rules. These rules, which came into effect on October 8, require companies to warn users about the potential risks of investing in certain crypto products and prohibit them from offering referral bonuses. The FCA has identified three common shortcomings among these firms. Firstly, some companies have been making claims about the safety and ease of use of cryptocurrency services without adequately highlighting the associated risks. Secondly, warnings issued by some firms have not been sufficiently visible, often due to small fonts or hard-to-see colors and positioning. Lastly, certain companies have failed to adequately outline the risks associated with specific products. The FCA has warned that it will take action against firms that do not meet these requirements and has already imposed restrictions on one company, rebuildingsociety.com. The regulator has issued 221 alerts to firms violating the new rules, with many of these alerts being issued immediately after the regulations came into effect. The new marketing regime for cryptocurrencies is particularly strict, allowing the government to impose unlimited fines and prison time on executives. As a result, several notable crypto services, including PayPal, Bybit, Nicehash, and Luno, have withdrawn from the UK.

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Information	Details
Geography	Europe
Countries
Sentiment	negative
Relevance Score	1
People	None
Companies	PayPal, rebuildingsociety.com, Bybit, Luno, KuCoin, Financial Conduct Authority (FCA), Nicehash, Binance, HTX
Currencies	None
Securities	None