“Personally, I would suggest we simply say that anything crypto-related should not be entitled to compensation so that consumers are clear about that when they are investing in,” says the FCA Chief
According to a Dec. 9 story in The Times, MPs on the Treasury Select Committee informed FCA chief Nikhil Rathi that the term “your investment” is frequently used to imply that they are comparable to an FTSE 100 business or a unit trust, providing the erroneous impression about the type of investment.
Harriett Baldwin, the Conservative MP for West Worcestershire, took particular issue with the FCA’s alleged failure to prevent bogus advertisements, accusing them of assisting criminals:
“Your website actually publishes a list of unregistered crypto-asset businesses for anti-money laundering purposes. It’s meant to be helpful but it could also be helpful to someone who just wants to launder money.”
Rathi said that the regulatory agency is presently investigating the incident and that new tools for controlling crypto ads are on the way. However, the major regulatory agency won’t be able to do much unless those additional powers are implemented.
“We’ll have a debate about the phrasing,” the FCA leader added.
Earlier, FCA chairman Charles Randell voiced worry over the wording of the Floki Inu commercial on London buses, but agreed that there was little that could be done other than issue consumer warnings.
The FCA chief also stated that if customers lose money in cryptocurrencies, the agency is considering denying any demands for compensation under the Financial Services Compensation Scheme:
“Personally, I would suggest we simply say that anything crypto-related should not be entitled to compensation so that consumers are clear about that when they are investing in.”
The Advertising Standards Authority in the United Kingdom issued a red notice against deceptive crypto advertising in July 2021, warning consumers to avoid such adverts.