The UK Treasury’s move to regulate crypto advertising as other financial goods aims to reduce the danger of investors being duped or misled.
UK’s crackdown on misleading crypto adverts
The UK Treasury stated on Tuesday that it intends to regulate cryptocurrency commercials in the same way that it regulates other financial products, ensuring that ads for cryptocurrencies adhere to proper and ethical advertising standards to limit the spread of incorrect information.
The Treasury intends to strengthen cryptocurrency marketing regulation by aligning it with other financial goods. The Treasury will be able to check that all crypto advertisements adhere to proper advertising guidelines, limiting the spread of incorrect information among investors. The Treasury Department also claimed that it seeks to promote “fair and unambiguous” cryptocurrency advertising.
The Treasury also issued a statement to the legislation, stating that the proposed legislation will be investigated and regulated by the Financial Conduct Authority (FCA) in order to effectively manage the UK’s endemic misleading advertising.
“Research suggests that understanding of what crypto is declining, suggesting that some users may not fully understand what they are buying,” the U.K Treasury said in a statement.
The UK Treasury’s move to regulate crypto advertising in the same way as other financial goods aims to minimise any potential dangers of investors being duped or incorrect information being spread.
In a statement released on Tuesday, UK Chancellor Rishi Sunak warned that while crypto offers new opportunities to transact and invest, it is critical that customers “are not sold products with deceptive claims.”
“We are ensuring consumers are protected, while also supporting the innovation of the crypto-asset market,” Sunak added.
The UK isn’t the only country to impose tough regulations to prevent deceptive crypto advertisements. To raise awareness among its residents, Spain has just announced a new set of regulations to combat scamming crypto advertisements. Previously, countries such as India and Singapore took a number of steps to promote balanced crypto commercials and ensure that the ads do not spread incorrect information.
