The reason for this decision is the surge in investment scams, especially these online since the coronavirus pandemic began in 2020. The FCA said in a statement.
“When it does, the FCA plans to categorise qualifying cryptoassets as ‘Restricted Mass Market Investments’, meaning consumers would only be able to respond to cryptoasset financial promotions if they are classed as restricted, high net worth or sophisticated investors.”
“Firms issuing such promotions would have to adhere to FCA rules, such as the requirement to be clear, fair and not misleading.”
The Financial Conduct Authority said the draft rules, put out to public consultation, prepare the ground for the government to bring in promotions of cryptoassets under the watchdog’s remit, according to Reuters.