UK financial regulator says there will be four types of cryptocurrency companies in the country"Legitimate Pathways" can comply with its digital asset promotion regulations, which will take effect on October 8, 2023.。Financial Conduct Authority (The FCA) said in a letter sent to cryptocurrency companies today (Tuesday) that the four options include publishing a promotion through an "authorized person" or approval by an authorized person.。The FCA defines an "authorized person" as an entity or person authorized to engage in regulated activities under the Financial Services and Markets Act 2000 (FSMA).。

The last two options are promotional dissemination through cryptocurrency companies registered under UK money laundering regulations, or usingExemptions provided by FSMA's Financial Promotion Order。Promotional content included websites, mobile apps, social media posts, and online advertising。Back in early July, the FCA disclosed that the agency was making its final confirmation on cryptocurrency marketing and advertising in the country.。The regulations were proposed as the number of cryptocurrency holders in the UK doubled in the past year.。The financial regulator noted that the new rules will require "clear risk warnings" in any cryptocurrency advertising or promotion.。It will also ban investment incentive schemes in the form of "referrals to friends" or "rewards for new entrants."。

FCA calls on cryptocurrency companies to prepare。Meanwhile, in a letter released Monday,Victoria McLoughlin (head of digital asset regulation, policy and competition) and Lucy Castledine (head of consumer investment regulation, policy and competition) point out that crypto asset companies, including those based overseas but marketing to UK customers, can prepare for the new regime by considering which legal path to take and how they will meet the requirements of that path.。They also urged companies to consider what they would do with their UK customers if they were unable to communicate their cryptocurrency-related promotions to those customers.。

"We expect companies to clearly communicate to UK consumers any changes to the services they will offer,and give consumers ample time to react before these changes take effect,FCA executives added.。

In addition,FCA leaders noted that ，For companies that decide to no longer provide services to UK consumers, they"An orderly liquidation plan must be in place to minimise any impact on UK consumers"。in addition, they pointed out that,Issuing a cryptocurrency promotion that does not follow the above four avenues will be considered a criminal offence, punishable by up to two years in prison, an unlimited fine, or both.。Other measures include shutting down websites, social media accounts and apps。

At the same time,Britain's King Charles III last week approved a plan to classify cryptocurrency transactions as regulated activities.and a new bill to include stablecoins in the scope of payment rules。The bill also includes measures to control the promotion of digital assets.。