Regulate Cryptocurrency Adverts: U.K. Government – BeInCrypto

Her Majesty’s Treasury has published a document wherein it proposes that the Financial Conduct Authority (FCA) regulates cryptocurrency adverts.

It states that this is a key consumer protection issue, and invites comments from relevant parties regarding the recommendations.

The UK government has proposed that cryptocurrency promotions, including advertisements, fall under the purview of the country’s financial regulator, the Financial Conduct Authority (FCA). The Treasury published a document titled ‘Cryptoasset promotions’ on July 16.

It considers bringing “certain types of cryptoassets within the scope of financial promotions regulation.” The proposal is categorized under consumer protection, market integrity, and financial crime.

The government assesses that “unregulated cryptoassets expose consumers to unacceptable levels of risk.” It goes on to single out advertising as a key consumer protection issue. It refers to a 2018 report which describes the issue as follows:

“Adverts often overstate benefits and rarely warn of volatility risks, the fact consumers can both grow and lose their investment, and the lack of regulation. There are also examples of regulated firms marketing cryptoasset products without clarifying that this part of their business is not regulated.”

As a result, it wishes to regulate advertisements to prevent misleading and inadequate promotions. Regulated firms will also be required to go through the FCA for promotions.

The UK Cryptocurrency Market is Growing

Crypto adoption rate
Crypto adoption rate

The adoption rate for the UK is roughly the same as the US, Germany, and France, according to research by Coinmonks. But the market has been growing, largely composed of the youth.

FCA research published in June revealed that 2.6 million residents had purchased cryptocurrencies. This was a 3.86% increase from the year before, a “statistically significant increase.” Roughly 80% of the 1.9 million individuals who owned cryptocurrencies held less than £1,000.

The new proposal and the seeming keenness of the government to regulate the asset class does give the impression that the nation will soon be going headfirst into the technology.

U.K. Government Trying to Balance Innovation and Consumer Protection

On an encouraging note, the document does say that it seeks to promote financial innovation. The government’s agencies — the FCA among them — have already taken steps towards regulation, which it outlines in the document.

Governors of the country’s central bank, the Bank of England, have spoken on digital currencies as well. Former governor Mark Carney, has said that the bank was examining the idea of a CBDC. And it was designed on a strict set of requirements. However, current governor Andrew Bailey does not have a good view of Bitcoin

BUY NOW, having said that people should be prepared to lose their money.

Do you want to Be In Crypto?
Join our Telegram Trading Group for FREE Trading Signals,
a FREE Trading Course for Beginners and Advanced Traders
and a lot of fun!

Images courtesy of Shutterstock, TradingView and Twitter.

Disclaimer. Read MoreRead Less

As a leading organization in blockchain and fintech news, BeInCrypto always makes every effort to adhere to a strict set of editorial policies and practice the highest level of journalistic standards. That being said, we always encourage and urge readers to conduct their own research in relation to any claims made in this article. This article is intended as news or presented for informational purposes only. The topic of the article and information provided could potentially impact the value of a digital asset or cryptocurrency but is never intended to do so. Likewise, the content of the article and information provided within is not intended to, and does not, present sufficient information for the purposes of making a financial decision or investment. This article is explicitly not intended to be financial advice, is not financial advice, and should not be construed as financial advice. The content and information provided in this article were not prepared by a certified financial professional. All readers should always conduct their own due diligence with a certified financial professional before making any investment decisions. The author of this article may, at the time of its writing, hold any amount of Bitcoin, cryptocurrency, other digital currency, or financial instruments — including but not limited to any that appear in the contents of this article.

Leave a Reply

Your email address will not be published. Required fields are marked *