Huge modifications to the way digital assets can be marketed in the UK now require cryptocurrency businesses to provide customers with a 24-hour "cooling-off period.".
Before they can complete their transaction, new investors must wait an entire day.
Up to one in ten UK adults, according to the government, now own cryptocurrency.
Failure to comply could result in up to two years in prison, a fine, or both for business owners.
There will be a ban on "refer a friend" advertisements, and all others must be "clear, fair, and not misleading.".
The regulations, which are scheduled to go into effect on October 8th, will cover a wide range of so-called crypto-assets, including digital currencies like Bitcoin and non-fungible tokens (NFTs).
More rules in the area have been called for.
A group of MPs claimed last month that cryptocurrency's characteristics "more closely resemble gambling than a financial service.". Additionally, the gambling-assistance organization GamCare told BBC News that it had received calls from more than 300 people in the previous two years who were having difficulty with investing in cryptocurrencies and other types of online financial markets.
The government passed legislation giving the Financial Conduct Authority control over how digital assets are promoted, and it is now implementing those changes.
All businesses marketing cryptocurrency in the UK will be subject to the regulations. Additionally, the FCA will "take robust action" (including taking offfenders' websites) against those who break the law.
Director of consumers and competition Sheldon Mills stated that the research revealed "many regret making a hasty decision.".
The choice to purchase cryptocurrency is up to the individual, he said.
"Our regulations give people enough time and accurate risk warnings to make an educated decision. .
Consumers must still be aware of the high risk and largely unregulated nature of cryptocurrency.
"Those who invest should be ready to lose everything they have. ".
The trade association agreed with "the principle" of the cooling-off period, but questioned the length, according to CryptoUK operations director Su Carpenter.
We would appreciate evidence-based research on the justification for this proposal, she said.
"We want to promote a competitive and equal environment for the crypto-asset industry so it can safely expand and innovate, while operating within the proper safeguards and providing education and information to all consumers.
"To help ensure this result, we will collaborate with our members to provide recommendations in response to the consultation.
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