UK cracks down on ‘misleading’ crypto marketing. United Kingdom officials have stated that they will review cryptocurrency marketing. More closely and crack down on “misleading” statements. That might lead to investors losing their money.
According to proposals presented on Tuesday, Finance Minister Rishi Sunak. Seeks to bring the adverts under the same regulatory framework. That already governs financial promotions.
The federal government intends to submit legislation to amend existing restrictions. On financial advertising to encompass bitcoin promotion as well. The competent regulatory authority must first provide permission. For a corporation to market investment goods before it can begin to do so.
As reported by the government, the Financial Conduct Authority, a U.K. watchdog entrusted. With regulating financial institutions, would begin consulting on potential financial promotion standards for cryptocurrencies. As soon as possible in the coming months.
“Cryptoassets can give individuals with intriguing new possibilities by providing them. With new methods to connect with and invest,” Sunak stated in a statement. “It is vital, however, that customers are not mislead into purchasing things. That make fraudulent claims,” he continued, adding that
When it comes to cryptocurrency advertisements, the Financial Conduct Authority (FCA). Has come under fire for failing to take action against them. These advertisements have been plastered across London’s underground rail network. And buses in recent months. As interest in bitcoin and other digital currencies has grown.
Cryptocurrencies are unregulated, says FCA
The Financial Conduct Authority (FCA) warns that cryptocurrencies are not regulated. And that anybody who invest in them should be prepared to lose all of their money. While the regulatory body has no authority over the cryptocurrency market in particular. It is becoming increasingly strict with enterprises that conduct business in the industry.
Earlier this year, the regulator issued a stern warning to Binance. The world’s largest cryptocurrency exchange, claiming that the company was not authorized. To engage in any regulated activity at the time. While Binance can still sell its services to citizens of the United Kingdom through its website. It must display a warning stating that its British unit is not regulated in the country.
Following Tuesday’s announcement, the Financial Conduct Authority (FCA). Will eventually have the authority to crack down on cryptocurrency advertisements.
Revolut, a British fintech company that provides trading in cryptocurrencies and stocks, expressed delight at the news.
According to Ed Cooper, Revolut’s director of crypto, “clear direction. In how companies represent their crypto offerings would benefit consumers. And help enhance trust in the sector.” It said that “Revolut continues to adhere to financial promotion regulations. In its crypto messaging.”
The Advertising Standards Authority of the UK cracks has previously taken action. Against a number of cryptocurrency advertisements. In December, the agency prohibited seven advertisements from companies. Such as Coinbase and Papa John’s for “irresponsibly taking advantage of consumers’ inexperience.” According to the regulator.
It also stopped a Luno crypto exchange campaign
It also stopped an advertising by the cryptocurrency exchange Luno. Which encouraged consumers to buy bitcoin without providing them. With any information about the risks associated with trading digital assets. The ASA has also stated that it is on “red alert” due to the situation.
Even though bitcoin had a spectacular year in 2021, with a gain of about 60%. The cryptocurrency and other digital tokens are notoriously unpredictable. They’ve known UK cracks to climb or plummet by more than 10% in a single day. In some instances.
When compared to its all-time high of about $69,000, which it reached in November. Bitcoin is currently down approximately 40%.
