UK to impose strict restrictions on misleading crypto ads
The UK treasury is planning to curb misleading crypto ads to raise consumer awareness regarding crypto investments.
In a bid to restrict misleading ads concerning cryptocurrency, the UK Treasury on Tuesday announced its plans to regulate cryptocurrency advertisements as other financial products and ensure that the ads concerning crypto adhere to proper and ethical advertising standards to limit the spread of false information.
UK’s crackdown on misleading crypto ads
The UK treasury plans to bolster crypto ads regulation by bringing them in league with other financial products. By doing so, the treasury will ensure that all crypto ads adhere to proper advertising standards and limit the spread of misleading information amongst investors. The treasury further stated that it intends to promote “fair and clear” advertising regarding cryptocurrency
The Treasury also published a legislation response that states the proposed legislation will also be examined and regulated by the Financial Conduct Authority (FCA) to effectively regulate the rampant misleading advertisements in the UK.
“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 decision to bring crypto advertising under the scope of regulation as other financial products intends to mitigate any possible risks that may end up deceiving investors or promote misleading information.
Chancellor of UK, Rishi Sunak, in a statement on Tuesday, stated that while crypto offers new ways to transact and invest, it is important that the consumers “are not being sold products with misleading claims.”
“We are ensuring consumers are protected, while also supporting the innovation of the crypto-asset market,” Sunak added.
The United Kingdom is not the only nation that has announced strict restrictions to impede deceiving crypto ads. Spain has recently issued a fresh set of restrictions to curb defrauding crypto ads to spread awareness amongst its citizens. Earlier, countries like India and Singapore have already adopted several measures to promote balanced crypto advertisements and ensure that the ads in no way propagate false information among people.