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Author: Admin | 2025-04-28
Ensure compliance. PayPal is also pausing certain crypto services until compliant with these regulations. Only firms registered with the Financial Conduct Authority (FCA) can authorize their own promotions. Crypto companies are gearing up for stringent U.K. advertising regulations. Though they can temporarily authorize their own promotions, this power is limited to firms registered with the FCA as virtual asset service providers. Furthermore, the rules necessitate significant online platform alterations to caution potential investors of risks. Unregistered firms are making changes: ByBit is ceasing services to U.K. clients by the effective date, while Luno is restricting certain U.K. clients from crypto investments. Additionally, the FCA has provided an option for firms to request a three-month extension to implement the required adjustments. However, there's concern about overseas companies' willingness to comply with this new regime. The guidelines demand that any communication that could be seen as an invitation or inducement to invest in crypto assets must comply. For many online-based crypto companies, this translates to substantial website changes and addressing challenges like implementing a 24-hour cooling period for first-time buyers. Introduction of the UK’s Travel Rule for Crypto The Travel Rule for crypto in the United Kingdom has been initiated on Sept. 1, aiming to regulate crypto transfers and prevent money laundering and terrorist financing activities on blockchain platforms. The Financial Conduct Authority (FCA) unveiled these regulations on Aug. 17, mandating Virtual Asset Service Providers (VASPs) in the U.K. to "collect, verify and share information" associated with crypto transfers. Should a VASP receive an inbound payment from a non-compliant overseas entity, they are required to conduct a "risk-based assessment" to decide if the assets should be made available to the recipient. The rule is applicable for U.K. residents wishing to make outbound payments as well. Originally crafted by the UN's Financial Action Task Force (FATF) in June 2019, the U.K. legislated its enforcement in July 2022. Countries like the U.S., Germany, Japan, Singapore, Switzerland, and others have also adopted the Travel Rule as per Sygna.io. However, on June 23, FATF criticized its members for inadequate rule implementation. By March 2022, only 29
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