UK regulation: Correct procedure brings Kryptos closer to the mainstream

Great Britain wants to be a center for fintech. Ads for obscure cryptos with dog motifs on the sides of London buses are not what ministers and supervisory authorities have in mind. Your plans to contain advertising campaigns and damaged crypto investors are a pragmatic answer.

A hard passage of the treasury and financial conduct authority should prevent new advertising of the species that floki inu-token inflated last year. The FCA also grabs the hives of crypto regulation. Over time. Most crypto buyers typically and wrongly believe that this has already happened.

The reasonable goal of the FCA is to neutralize moral risk by taking on a significantly limited responsibility for monitoring these volatile assets. Regulated companies were only able to sell crypto-assets to the rich and financially demanding. They are the few remaining small investors, for which the reservation still seems to apply in the United Kingdom.

These crypto buyers most likely have no access to the Financial Services Compensation Scheme. In this way, prudent pensioners would not lead to ruthless buyers of the latest imitator of Bitcoin. The cost of the program has already doubled to £ 717 million over a decade.

advertising campaigns have contributed to providing a phenomenon of retail investments, which is also bloated by cheap money. An Instagram plug for a new digital token from reality TV star Kim Kardashian may have had the greatest range in the history of financial advertising, says former FCA chairman Charles Randell. Allegations that it is a "pump and dump" system are the subject of a US collective action.

The access of the United Kingdom would extend to advertising campaigns on social media. This will not stop people from buying word of mouth or online gossip in response to word of mouth. Not all types of crypto-assets will also cover it. Not funny tokens that are considered digital collectibles do not fall under the new rules.

In all this index finger of the tax authorities, there is a paradox. They implicitly recognize that some crypto investments are acceptable, even if they are not advisable. Specialized crypto investment companies should look forward to this modest improvement in your official status. Urban investment banks, most of which are now employed by crypto specialists, will keep an eye on the possibilities created.

politicians and supervisory authorities must have sailed, Bitcoin, the flagship of cryptography, would collapse and reduce their regulatory dilemma to a minimum. At around $ 42,000, it is only a third under his all -time high. Delay out is no longer an option for the British tax authorities.

The Lex team is interested in hearing more from the readers. Please let us know in the comments below your opinion on the plans of the FCA.