FCA imposes warning labels on crypto's "very poor-quality" promotions

Promotors of crypto products will be required to give stark warnings equivalent to the 'Smoking kills' statements on cigarettes. A suggested wording from the FCA begins: "Don't invest unless you're prepared to lose all the money you invest."

By Neasa MacErlean

The stipulation comes under new advertising rules that are due to start on 8 October. After the first sentence, the regulator's proposed wording continues: "This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more." The final rules are "largely as consulted". The spotlight was on the Government and Financial Conduct Authority after a 75 per cent fall in crypto-prices in the seven months to June last year. And in June the United States Securities and Exchange Commission sued Binance and Coinbase, the two exchanges that carry out half of all global trading in digital assets.