The UK’s financial watchdog said on Wednesday that companies marketing cryptoassets are failing to adequately explain the risks to consumers, for example by publishing warnings that are too difficult to read.

The UK’s Financial Conduct Authority has been given new powers to regulate cryptoasset advertising since 8 October and said it has so far found three common problems and will take action if they are not addressed.

The FCA said that adverts made claims about the safety, security and ease of use of cryptoassets without highlighting the risks involved.

The risk warnings were printed in small print or in colours that were difficult to read, and there was a lack of adequate information about the risks associated with the specific products being promoted, the FCA said.

On 10 October, the FCA said it was banning peer-to-peer platform rebuildingsociety.com from approving financial promotions for Binance and other cryptocurrency companies.