Advertising of crypto asset will be included in the scope of application of the current legislation on financial promotions
The UK will take action against “misleading” advertising of crypto asset that could harm consumers, the Treasury said on Monday.
Advertising for cryptocurrencies such as bitcoin has been on the rise especially in London, raising concerns about its impact.
The Finance Ministry said some 2.3 million people in the UK now own cryptoassets, but research suggests understanding of what they are is declining, so some users may not fully understand what they are buying, it said. the ministry.
“Cryptocurrency assets can offer new and exciting opportunities, offering people new ways to transact and invest, but it is important that consumers are not sold products with misleading claims,” British Finance Minister Rishi Sunak said in a statement release.
The Ministry of Economy and Finance presented the conclusions of a public consultation on the promotion of cryptocurrencies such as bitcoin.
Cryptocurrency advertising will come under the scope of current legislation on financial promotions, according to the ministry.
This means that the promotion of crypto assets that meet the requirements will be subject to the regulations established by the Financial Conduct Authority (FCA, for its acronym in English), which will subject them to the same regulations as financial promotions of shares and insurance products. the ministry said.
A company will not be able to promote crypto assets unless it is authorized by the FCA or the Bank of England, or the content of the promotion is approved by a company that is, the ministry added.