Crackdown on the ‘wild west’ cryptocurrency industry is delayed

A crackdown on cryptocurrency has been delayed.

The Financial Conduct Authority said stricter regulation about marketing crypto would come into force next month but firms can apply for more time to comply with rules, such as a 24-hour cooling-off period.

It said companies could be given until January 8. The rules were due to take effect from October 8.

The delay is a blow to campaigners who have argued protections must be brought in imminently to help vulnerable consumers.

The FCA has criticised some firms. 

‘We are concerned by the failure of many overseas and unregulated crypto firms to engage with us on the rules,’ said Lucy Castledine, director of consumer investments. 

‘We’ll be taking action against firms illegally marketing to UK consumers’.

Breaches of the rules, which aim to make marketing of crypto assets clearer and more accurate, and ban incentives like ‘refer a friend’ bonuses, could be punished by an unlimited fine or up to two years in prison. 

The watchdog reiterated that crypto assets are high-risk and buyers should be prepared to lose all their money.