UK tightens rules on crypto ads to ensure they are fair, clear and not misleading – Regulation

The UK government has announced plans to introduce new rules for cryptocurrency ads to ensure they are fair, clear and not misleading to consumers. The rules are enforced by the Financial Conduct Authority (FCA).

Britain wants to impose new rules on crypto ads

The British government on Tuesday announced plans to introduce new rules on cryptocurrency advertising to “protect consumers from misleading claims.” The announcement states:

New regulations will improve consumer protection while encouraging innovation.

UK Chancellor of the Exchequer Rishi Sunak commented: “Crypto assets can offer exciting new opportunities and give people new ways to transact and invest – but it is important that consumers are not sold products with misleading claims.”

The new rules will bring the promotion of crypto assets within the scope of financial promotion legislation to ensure they are “fair, clear and not misleading,” the government said, stating:

This means that the promotion of qualifying crypto assets is subject to FCA rules, which adhere to the same high standards that other financial promotions such as stocks, shares and insurance products are held to.

While the UK government stressed that it is committed to supporting innovation, it noted that “research conducted by the FCA has highlighted the potential for misleading advertising of crypto products that could cause harm to consumers.”

Under the UK's Financial Services and Markets Act 2000, a company may only advertise a financial product if it is authorized by the FCA or the Prudential Regulation Authority (PRA), or the content of the advertisement has been approved by a firm, the government noted, adding:

This will give the Financial Conduct Authority the relevant powers to regulate the market more effectively.

Recently, the UK Advertising Standards Authority (ASA) took action against misleading crypto advertising. In December, the UK Advertising Standards Authority banned it seven crypto ads for Papa John's Pizza, Coinbase, Kraken, Etoro, Luno, Coinburp and Exmo. It is in November collapsed on ads for the cryptocurrency Floki Inu (FLOKI).

What do you think about the UK government bringing crypto advertising under the jurisdiction of the FCA? Let us know in the comments section below.

Kevin Helms

As a student of Austrian economics, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the interface between economics and cryptography.

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