The government of the United Kingdom is committed to bringing new rules that will take down "misleading claims" about crypto ads. The new policies will ensure that consumers will not be fed with deceptive information about digital investments.
UK Crackdown on Misleading Crypto Ads
The UK government is now seeking ways to prevent the spread of misleading claims from crypto ads. It is now looking forward to implementing the new policies to promote consumer protection against them.
On Tuesday, Finance Minister Rishi Sunak announced the implementation of the new rules about the financial advertising of crypto.
According to a report by Bitcoin.com, the latest announcement said that policies will leverage consumer protection while doing innovation on the other end.
As part of this process, there will be legislation to change the current rules on advertising finances, which include cryptocurrencies. Moreover, authorization from the regulators will be required if the companies want to launch promotions for their investment services or products.
UK watchdog Financial Conduct Authority (FCA) will be the governing body responsible for the regulation of financial promotions, per the government's statement.
"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," Sunak said.
Furthermore, the UK government also emphasized the FCA's research regarding the huge risk posed by misleading advertising of digital currencies and other related products. This would help the authorities formulate a solution to prevent consumer harm from happening.
Per the U.K. Financial Services and Markets Act 2000, a financial product should first receive authorization from FCA or PRA before being promoted.
Related Article: UK Watchdog Bans Crypto Ads-Claiming They Fail to Explain Digital Coin Investment's Risk! eToro and More Affected
ASA Takes Down Crypto Ad Posts
In another report by CNBC, FCA witnessed the rising demand for bitcoin and other cryptos across the country after several investors complained about the malicious advertisements.
At that time, the watchdog issued a warning to consumers not to invest all their money in digital currencies.
Back in July, Tech Times reported that the country's Advertising Standards Authority (ASA) addressed the issue of the widespread crypto ads.
According to the agency, they had taken down every post about these deceptive advertisements across social media.
Considering that authorities have a hard time controlling the crackdown, the burden is heavier for the investors.
ASA Director of complaints and investigations Miles Lockwood placed the commotion on a red alert level as more businesses were hit by this financial dilemma.
All-New Record For Crypto Ads
Another article by Tech Times pointed out the surge of crypto ads on several platforms. The authorities were notified that these could cause concerns in line with financial harm and risk of addiction in terms of gambling.
The report also mentioned that eToro, Floki, Crypto.com, and Luno money were some of the ads shown on London transportation systems.
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This article is owned by Tech Times
Written by Joseph Henry
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