The Financial Conduct Authority (FCA) said "refer a friend" bonuses for crypto buyers would also be scrapped and that those promoting such assets would have to put in place clear risk warnings and ensure adverts were clear, fair and not misleading.
But research shows many regret making a hasty decision," said Sheldon Mills, executive director at the FCA's consumers and competition division.
"Consumers should still be aware that crypto remains largely unregulated and high risk," he said.
FCA research shows that estimated crypto ownership has more than doubled from 2021 to 2022, with 10% of 2,000 people surveyed stating they own cryptoassets.
Under the new rules, crypto firms will have to carry warnings such as: "Don't invest unless you're prepared to lose all the money you invest.
Persons:
Dado Ruvic, Crypto, FTX, Sheldon Mills, Myron Jobson, Kirstin Ridley, Emelia Sithole
Organizations:
REUTERS, Financial Conduct Authority, FCA, Thomson
Locations:
Britain