The rules mandate that all crypto marketing must be “clear, fair and not misleading” and should be accompanied by prominent risk warnings. Additionally, companies are prohibited from offering inappropriate incentives such as “refer a friend” bonuses. These rules apply globally, regardless of where the crypto firms are based.

However, firms that require more time for “greater technical development,” like the introduction of a 24-hour cooling-off period for first-time investors, may be granted an extension until 8 January 2024. To avail themselves of this flexibility, companies must submit an application.

Lucy Castledine, Director of Consumer Investments at the FCA, said: “From this October, crypto firms must market to UK consumers clearly, fairly and honestly. And they must provide risk warnings people understand.

“As a proportionate regulator, we’re giving firms that apply a little more time to get the other reforms requiring technology and business change right. We’ll maintain our close eye on firms during this extended implementation period.

“We are concerned by the failure of many overseas and unregulated crypto firms to engage with us on the new rules. Come 8 October, we will be taking action against firms illegally marketing to UK consumers.”

Anyone who continues promoting crypto to UK customers past the October deadline without complying with the rules, may be committing a criminal offence punishable by an unlimited fine and up to two years imprisonment.