"Come October 8, we will be taking action against firms illegally marketing to UK customers."
To further support firms to make necessary improvements to their marketing, the FCA has published examples of good and poor practice on firms' preparations for the new marketing rules.
Industry reaction
The announcement was welcomed by Interactive Investor senior personal finance analyst, Myron Jobson, who said: "Cryptocurrencies marketeers have danced to the beat of their own drum for far too long."
"Tougher rules on cryptocurrency regulation couldn’t come soon enough."
However, he went on to caution as he said the challenge for the regulator is to devise a robust customer knowledge framework so that all the players involved knows what good looks like.
Meanwhile, Hargreaves Lansdown head of money and markets, Susannah Streeter, expressed similar positivity.
"It’s clear the FCA recognises the damage that can be done to overall investor confidence when such high-risk investments are bought by people who seem woefully unaware of the risks," she said.
Though she also acknowledged that the authority "knows it’s also walking a tricky tightrope".
It recognises these beefed-up safeguards are needed to ensure consumers are more protected from another crypto implosion, but at the same time it doesn’t want to quash innovation in the digital coin and blockchain space," she explained.
The FCA also reminded consumers that purchasing cryptoassets is high-risk and that they should be prepared to lose all their money.
tom.dunstan@ft.com
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