U.K. financial watchdog warns crypto companies of imprisonment if new ad rules breached

If cryptocurrency-related firms in the U.K. violate the Financial Conduct Authority's restrictions on financial promotions, then they can be subject to up to 2 years in prison, the country's regulator said in a release Monday. The regime will come into force only if Parliament approves it. Some of the rules include requiring firms to use certain risk warnings, in addition to the requirement that their promotions are clear, fair and not misleading. "This regime will apply to all firms marketing cryptoassets to UK consumers regardless of whether the firm is based overseas or what technology is used to make the promotion," the FCA said . Increased regulatory scrutiny of the crypto space is taking hold following the huge failure of crypto exchange FTX ( FTT-USD ) and other high-profile implosions. In the U.S., senator Tim Scott (R-SC) was said to have mapped out his priorities for a bipartisan regulatory framework for cryptos .