Investment in crypto assets should be capped, with consumers warned that they could lose all their money, the U.K. Financial Conduct Authority said in a policy document published Monday.
There will be a ban on offering bonuses to clients who refer friends, the financial-services regulator said as it prepares for new laws that will extend its powers to cover digital assets including cryptocurrencies.
In April, then finance minister Rishi Sunak said he wanted to make the country a crypto asset hub. But the recent market crash, which saw a fall in the price of bitcoin and the collapse of assets such as the terraUSD (UST) stablecoin and Three Arrows Capital fund, has made the regulator only more determined to act against what it sees as unduly risky behavior.
‘Enforcement 40’ for 2020
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