The UK government stated that ads for crypto virtual currencies will be investigated rigorously. Furthermore, misrepresentative claims that may result in investors losing money may be penalized.
As per recommendations unveiled Tuesday, Finance Minister Rishi Sunak seeks to place the commercials under similar restrictions as financial pitches.
The government plans to submit laws to change current financial advertising regulations to incorporate cryptocurrency. Regulators must approve first if a company wants to advertise financial goods.
According to the government, the Financial Conduct Authority will shortly begin consulting on prospective financial promotional laws for digital currencies. The Financial Conduct Authority (FCA) is a UK organization that monitors financial firms.
Cryptoassets can present exciting new choices for individuals to trade and invest, Sunak said in a statement. It is vital, however, that consumers be not provided with things that make false claims.
What’s for FCA?
The FCA failed to take action. They were reprimanded as a result of their actions. Specifically against crypto advertising. This has swamped London’s subway and bus systems in recent months as enthusiasm for bitcoin. Because of this, other cryptocurrencies have grown.
The FCA cautions that virtual currencies are unregulated. Anyone trading in them should expect to forfeit their entire investment. Whereas the governing body has no authority over the cryptocurrency market in particular. It is cracking down on enterprises that operate in it.
Last June, the regulatory issued a strong caution to Binance. BNB is the world’s largest cryptocurrency exchange. They stated that the company is not permitted to engage in any regulated business. Binance can continue to provide its services to UK residents via its site.
Following Tuesday’s statement, the FCA will have the authority to regulate crypto advertisements in the future.
About Revolut
Revolut, a British fintech business that enables cryptocurrency and stock trading, expressed its delight at the news.
Clear direction in how organizations promote their cryptocurrency offerings will assist users. Also, it significantly boosts confidence in the market, Revolut’s director of crypto, Ed Cooper, said. In its cryptocurrency marketing, Revolut strives to obey the financial marketing guidelines.
Crypto in UK
The Advertising Standards Authority in the UK has previously taken measures against some bitcoin advertisements. In December, the agency barred seven advertisements from firms such as Coinbase and Papa John’s for frivolously exploiting consumers’ inexperience.
It also disallowed marketing from the crypto exchange Luno. Furthermore, it urged consumers to purchase bitcoin without disclosing the hazards of crypto trading. The ASA has also issued a red alert over the situation.
While bitcoin and other digital currencies had a good year in 2021, gaining about 60%, they are highly unstable. They fluctuate by much more than 10% on a given day.
Bitcoin has presently dropped over 40% from its all-time high of about $69,000, set in November.
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