Great Britain tightens the rules for crypto ads to ensure that they are fair, clear and not misleading-regulation
Great Britain tightens the rules for crypto ads to ensure that they are fair, clear and not misleading-regulation
The British government has announced plans to introduce new rules for cryptocurrency ads to ensure that they are not misleading for consumers. The rules are enforced by the Financial Conduct Authority (FCA).
Great Britain wants to impose new rules for crypto ads
The British government announced on Tuesday plans to introduce new rules for cryptocurrency advertising to "protect consumers from misleading claims". In the announcement it says:
New regulations will improve consumer protection and promote innovations at the same time.
The British Treasury Chancellor Rishi Sunak commented: "Crypto-assets can offer exciting new opportunities and offer people new opportunities for transactions and investments-but it is important that consumers are not selling products with misleading claims."
The new rules will bring the promotion of crypto-assets into the scope of legislation for financial funding in order to ensure that they are "fair, clear and not misleading", the government explained and explained:
This means that the promotion of qualified crypto assets is subject to the FCA rules that correspond to the same high standards that are bound by other financial funding such as stocks, stocks and insurance products.
The British government emphasized that it endeavored to support innovations, but found that "FCA has shown the potential for misleading advertising for crypto products that could harm consumers".
According to the British Financial Services and Markets Act 2000, a company may only advertise for a financial product if it is authorized by the FCA or Prudential Regulation Authority (PRA) or the content of the advertising was approved by a company that the government found:
This gives the Financial Conduct Authority the corresponding powers to regulate the market more effectively.
Recently, British Advertising Standards Authority (ASA) acted against misleading crypto advertising. In December, the British advertising supervisory authority Seven crypto ads collapsed
What do you think that the British government brings crypto advertising to the responsibility of the FCA? Let us know in the comment area below.
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