The UK’s Financial Conduct Authority (FCA) has warned crypto companies to comply with the country’s financial promotion regulations or face up to two years imprisonment.

The FCA stated that the crypto regulations would be similar to those guiding other high-risk investments and require crypto promotions to be clear, fair, and not misleading, with specific risk warnings and a 24-hour cooling-off period.

Crypto promotions can only be communicated or approved by an FCA-authorized person or a registered business.

The FCA advised crypto firms targeting UK consumers to prepare for this regime, as early preparations would allow for continued promotion of crypto legally.

The Advertising Standards Authority is also working to clamp down on misleading crypto ads. The UK government is continuing its efforts to turn the country into a crypto hub, with plans to extend regulations to cover crypto exchange operations.