- The UK will strengthen its rules on crypto adverts to avoid “misleading” claims
- Crypto adverts will now fall under the jurisdiction of the Financial Conduct Authority
- The FCA will outline its crypto advert rules soon
The British government has announced plans to crack down on cryptocurrency advertising in the country to ensure that the public is not exposed to “misleading” adverts. The government announced the measure yesterday, stating that crypto adverts will have to comply with Financial Conduct Authority (FCA) rules on financial adverts, which immediately limits what companies can and can’t say about investment potential.
Cryptocurrency Understanding is “Declining”
In yesterday’s announcement the government noted that some 2.3 million people in the UK are now taking part in the crypto space, but that while usage is increasing “research suggests that understanding of what crypto actually is is declining”. This, the piece says, suggests that “some users may not fully understand what they are buying.” Dog coins, need we say more.
The announcement cited research from the FCA which “highlighted the potential for misleading advertising of crypto products to cause consumer harm”, which has led them to clamp down on what crypto advertisers are allowed to say in their adverts.
UK Crypto Adverts Now Under FCA Jurisdiction
No rules have yet been put in place but the governed added that the FCA will “shortly be consulting on their proposed financial promotions rules that will apply to cryptoassets.”
The news comes just a day after Singapore’s financial watchdog took even stricter action, banning all cryptocurrency adverts from public places and restricting them to the websites, apps, and social media profiles of the companies themselves.