Cryptocurrency exchange Luno has announced plans to temporarily suspend the ability of certain users to invest in cryptocurrencies.
The decision to suspend investments in the UK is due to the introduction of new rules for the promotion of cryptocurrencies in the UK on October 8, which will come into effect on October 6.
"The FCA has implemented new rules for crypto firms. As a result, all compliant crypto firms with U.K. customers are making a number of changes to their platforms in order to comply with the new regulations," said Nick Taylor, Head of Public Policy at Luno.
"For Luno, this includes pausing the ability to invest through the platform for some clients for the time being," he added.
According to the CoinDesk portal, the new FCA rules are intended to protect consumers and promote greater transparency in the crypto sector. The rules will classify cryptocurrencies as limited mass-market investments and require promotions to include clear warnings and prohibit inducements.
Although the new rules will go into effect on October 8, firms can apply for an additional three months to ensure compliance.
The exchange notes that affected users will still be able to sell and withdraw their funds.
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