The popularity of crypto-assets is rising, with at least 2.3 million people in the UK owning cryptocurrency, HM Treasury reported. However, research by the government says that a large number of citizens don’t fully understand cryptocurrencies and don’t know what they’re buying.
Most cryptocurrencies, including Bitcoin, are unregulated, leaving investors unprotected and without any guarantees.
The UK government disclosed a plan “to bring the promotion of crypto assets within the scope of financial promotions legislation.” In other words, the promotion of cryptocurrency will be determined by FCA rulings, corresponding with high standards of other financial promotions applied to stocks, shares, and insurance products.
This should ensure crypto adverts are fair, understandable, and not misleading.
According to Chancellor Rishi Sunak:
“Cryptoassets can provide exciting new opportunities, offering people new ways to transact and invest – but it’s important that consumers are not being sold products with misleading claims. We are ensuring consumers are protected, while also supporting innovation of the cryptoasset market.”
On the Flipside
- At the moment, new rules don’t apply to NFTs.
- UK watchdogs have already banned several crypto advertisements, including Arsenal football club fan tokens.
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