The popularity of crypto-assets is rising, with at least 2.3 million people in the UK owning cryptocurrency, HM Treasuryย reported. However, research by the government says that many citizens donโt fully understand cryptocurrencies and donโt know what theyโre buying.
Most cryptocurrencies, including Bitcoin, are unregulated, leaving investors unprotected and without any guarantees.
Sponsored
The UK government disclosed a plan โto bring the promotion of crypto assets within the scope of financial promotions legislation.โ 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:
โCryptoassets can provide exciting new opportunities, offering people new ways to transact and invest โ but itโs 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.โ
On the Flipside
- At the moment, new rules donโt apply to NFTs.
- UK watchdogs have already banned several crypto advertisements, including Arsenal football club fan tokens.ย