Luno, a cryptocurrency exchange owned by Digital Currency Group (DCG), is set to temporarily halt certain UK clients’ crypto trading activities in response to upcoming regulatory changes imposed by the UK’s Financial Conduct Authority (FCA). These regulatory adjustments, scheduled to take effect on October 8, require exchanges serving UK customers to make specific platform modifications to ensure compliance, as reported by CoinDesk.
Affected Luno customers received notifications via email, indicating that they would no longer be able to engage in crypto trading starting from October 6, two days before the regulatory changes are enforced. Luno’s Head of Public Policy, Nick Taylor, confirmed the temporary restriction, clarifying that it was in response to the FCA’s new rules for crypto firms. He explained that compliant crypto firms with UK customers are making platform adjustments to adhere to the regulations. For Luno, this means temporarily suspending the ability to invest through the platform for some customers, while selling and withdrawals would continue to be accessible to all users.
From 8 October 2023, #crypto firms must market to UK consumers clearly, fairly and honestly, and must also provide risk warnings people understand. https://t.co/cqxj1jVtAT
— Financial Conduct Authority (@TheFCA) September 7, 2023
The new FCA regulations primarily pertain to the marketing and promotion of cryptocurrency trading, categorizing crypto assets as “restricted mass market investments.” Under these rules, all advertisements for crypto trading must be transparent, fair, and free from misleading information, with appropriate warnings included. Additionally, trading incentives such as bonuses will be prohibited, a decision that has garnered criticism from some crypto advocacy groups. Sheldon Mills, the FCA’s Executive Director for Consumers and Competition, emphasized that these rules aim to provide individuals with the time and appropriate risk warnings to make informed decisions regarding crypto investments.
