The UK's financial regulator, the Financial Conduct Authority (FCA), has issued new marketing rules that, from October 8, 2023, companies marketing crypto assets to UK consumers will need to set a cooling-off period for users investing for the first time.

As part of a package of measures to ensure that cryptocurrency purchasers understand the risks of investing in the asset, "referral friend" campaign bonuses will also be banned.

The release of the new regulations means that cryptocurrency companies must ensure that investors have the appropriate knowledge and experience to invest in crypto assets. Cryptocurrency campaigns must also include clear warnings of risks and ensure that advertising is clear, impartial and not misleading.

Sheldon Mills, executive director of Consumer and Competition at the FCA, said: "People have the right to decide for themselves whether or not they want to buy cryptocurrencies. But research shows that many people make hasty decisions that they regret. Our new rules provide them with cooling-off time and adequate risk warnings so that they can make more informed decisions and choices.

"Consumers should still be aware that cryptocurrencies remain largely unregulated and the risks are high. Those investors should be prepared to lose all their money."

"The crypto industry needs to prepare for this major rule change. We are developing additional guidelines to help them meet our requirements and expectations."

According to FCA research, cryptocurrency ownership has more than doubled between 2021 and 2022, with 10 percent of the 2,000 people surveyed saying they own cryptocurrencies.

The cryptocurrency promotion rules are in line with those introduced by the FCA last year to tackle misleading financial advertising of high-risk investments. The new rules also support the FCA's three core commitments set out in its 2023/24 business plan to reduce and prevent serious harm, set and test higher standards, and promote competition and positive change.

The FCA is also consulting on additional guidance setting out a code of conduct for companies promoting cryptocurrencies to UK consumers. Those with submissions have until August 10 to respond.