
While the new regulation allows for crypto firms to authorize their own promotions in the country, only those companies that register with the Financial Conduct Authority as virtual asset service providers get that privilege. The regulations also require firms to enhance their online platforms to provide better warnings to potential investors of investment risks.
Unregistered firms such as Luno and ByBit have said they are halting services to U.K. clients ahead of the Oct. 8 effective date for the new rules, while payments giant PayPal said it was suspending some crypto services until it is compliant with the new rules. Similarly to CoinDesk, Luno is owned by the Digital Currency Group.
Crypto firms that largely operate online must make changes to their websites to comply with regulations. The FCA said earlier this month that firms had faced significant obstacles trying to implement a 24-hour cooling period for first-time buyers that requires platforms to wait at least a day for users to re-confirm they want to receive invitations to invest. Companies have also struggled to put in place measures to evaluate whether certain products are appropriate for clients, according to the regulatory agency.
We've just been working as quickly as possible to kind of develop the back-end platform changes that are necessary as well as reviewing our content to make sure it's fair, clear and obviously in line with the new guidelines, said Moonpay Deputy General Counsel Matt Sullivan.
t actually provide the service from the U.K. and things like that. It's much harder to take those views, said Clifford Chance lawyers Diego Ballon Ossio and Diego Ballon Ossio. Reverse sollicitation is the argument that clients approach a company first.