As anticipation builds around the impending regulatory changes introduced by the UK’s Financial Conduct Authority (FCA), geared to take effect on October 8, nerves have started to impact the market. One exchange feeling the pinch is Luno, a crypto-platform under the umbrella of Barry Silbert’s Digital Currency Group (DCG).
An unexpected development disrupting the equilibrium of the UK crypto sphere results from the necessity for exchanges dealing with UK clients to make ad hoc alterations on their platforms to maintain compliance. This information surfaced following an email from Luno to its customers, implying a halt on crypto-trading from October 6 – two days ahead of the projection of these regulatory changes.
Confirming the news, Luno’s head of public policy, Nick Taylor, clarified that the halt is provisional. As per Taylor’s comments to CoinDesk, “The FCA has implemented new rules for crypto firms. As a result, all compliant crypto firms with U.K. customers are making a number of changes to their platforms in order to comply with the new regulations.”
However, despite the trading halt, the selling and withdrawal of funds will persist unaffected, providing relief to investors.
The focal point of these new FCA rules is the marketing and promotion of crypto trading. The asset class will now inhabit the “restricted mass market investments” category.
The rules dictate that advertisements showcasing crypto trading are obligated to be “clear, fair and not misleading.” Included within these guidelines will be requisite warnings, a measure that could potentially rattle less seasoned investors. Interestingly, trading allurements such as bonuses will also be prohibited – a clause that has led to criticism from numerous crypto lobby groups.
The regulatory adjustment aims to give potential investors room to ponder their choices and comprehend the associated risks, as per Sheldon Mills, the FCA’s Executive Director for Consumers and Competition. While some may view these changes as limiting, others might argue they are an essential step towards fully integrating cryptocurrency into mainstream finance. However, only time will tell whether these alterations will stifle the nascent energy of the crypto market or steer it towards a path of sustainable evolution.
Source: Cryptonews
