UK Watchdog suggests strict new rules for crypto advertising

The British Financial Conduct Authority plans to tighten the rules for advertising for risky investments while preparing to take on the responsibility for cryptocurrency advertising, which raises further questions about how crypto companies can market their services in Great Britain.

The supervisory authority proposed a comprehensive change in the rules for the sale of risky investments to the public on Wednesday in order to react to the “quick growth” of risk to risk during the covid 19 pandemic.

"Too many people are tempted to invest in products that they do not understand and that are too risky for them," said Sarah Pritchhard, Executive Director of Markets at FCA.

The draft standard contains details of how the British financial supervision wants to regulate advertising for cryptocurrencies after the Ministry of Finance announced on Tuesday that it would try to include advertising campaigns for digital tokens in the FCA area of ​​responsibility.

The rules for crypto will ban payments to new customers who register or recommend their friends, tighten the wording of risk earnings in ads and already tighten strict rules that determine which companies can sign advertising actions before their publication.

Rights experts and representatives of the crypto industry have expressed doubts as to whether some crypto promoters will be able to find FCA-enclosed companies to check their advertising and predict that the new rules will reduce advertising.

The FCA plans to publish the final rules this summer after a consultation phase, although the Ministry of Finance said that its new approach for crypto would also require legislation in parliament.