Government to Regulate Crypto Advertising in New Crack Down

Government to Regulate Crypto Advertising in New Crack Down

The UK government has announced plans to crack down on the advertising of cryptocurrency products to prevent consumers from being misled into purchases.

The Treasury claimed that around 2.3 million people in the country now own some form of “cryptoasset,” but that understanding of these financial products is declining. That could lead to them being mis-sold to investors, it warned.

As a result, the government will be legislating to ensure the promotion of cryptoassets are subject to the same Financial Conduct Authority (FCA) rules as other financial promotions such as stocks, shares and insurance products.

Specifically, it will do this by amending the existing Financial Promotion Order.

“Under the Financial Services and Markets Act 2000, a business cannot promote a financial product unless they are authorized by the FCA or the Prudential Regulatory Authority, or the content of the promotion is approved by a firm which is,” the Treasury explained.

“Firms that wish to promote such investments and activities must comply with binding rules that financial promotions must be fair, clear, and not misleading.”

According to 2021 research by financial regulator the FCA, over 4% of the population now owns cryptocurrency assets, at

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