Britain’s financial watchdog said that it planned to introduce restrictions on marketing cryptoassets and other high-risk investments like crowdfunding and retail mini-bonds, according to reuters.
The changes would strengthen risk warnings on ads and ban incentives to invest, such as new joiner or refer-a-friend bonuses, the Financial Conduct Authority (FCA) said.
The changes would supposedly strengthen the risk factor on ads and ban the incentives to invest, such as rewards for a new joiner or refer-a-friend bonuses, FCA said.
“We are concerned that too many consumers are just ‘clicking through’ and accessing high‑risk investments without understanding the risks involved,” the FCA said.
The planned rules cover high-risk investments such as cryptoassets, including cryptocurrencies such as Bitcoin, as well as crowdfunding, peer-to-peer agreements, mini-bonds and speculative illiquid securities.
The draft rules, put out to public consultation, also prepare the ground for the government to bring in promotions of crypto assets under the watchdog’s conduct remit for the first time following a finance ministry announced on Tuesday.
Under the proposed rules, firms that approve and publish promotions must have relevant experience and understanding of the investments being offered, the watchdog said.
“Those looking to make certain high-risk investments would also be asked more robust questions about their knowledge and investment experience, after research found many consumers were investing without being aware of the risks,” it added.
The FCA will set out final rules in the summer.