Crypto ads will need to carry a clear risk warning under new rules imposed by the UK financial watchdog.
Firms have been told by the Financial Conduct Authority (FCA) that they must warn customers not to expect protection if their investment goes wrong in adverts from 8 October this year.
Examples of such notifications would include advising customers that “if something goes wrong” they ought to be “prepared to lose all the money you invest.”
The FCA also said companies should introduce a ‘cooling off’ period for first-time investors.
Companies adverting crypto assets such as Bitcoin will need to offer a pause to new investors requesting to invest in their products. Bonuses for introducing friends to a firm’s products will also be banned under the new rules.
“It is up to people to decide whether they buy crypto. But research shows many regret making a hasty decision. Our rules give people the time and the right risk warnings to make an informed choice,” said Sheldon Mills, executive director of consumers at competition at the FCA, quoted in the Guardian.
“Consumers should still be aware that crypto remains largely unregulated and high risk. Those who invest should be prepared to lose all their money," he added.