The Financial Conduct Authority (FCA) published a report in 2021 mentioning that 2.3 million Britons hold cryptocurrencies. A large number of them have taken the plunge without having weighed the risks associated with this investment beforehand. This is why the government has taken the decision to crack down on misleading advertisements regarding crypto assets.
A hunting license issued to the FCA
Faced with the resurgence of misleading advertisements in the United Kingdom, the Johnson government has unveiled its drastic plans against them. To show his good faith, he proposed classifying digital financial assets in the same category as stocks, shares and insurance products.
This move comes at a good time in a context where crypto advertisements have flooded London lately. The Guardian estimates that around 40,000 announcements related to digital financial assets on the capital’s transport network between April and September 2021.
Watching innovation closely and caring about the well-being of its people, the British government wants to encourage advertisements “ fair, clear and not misleading » throughout its territory. He did not hesitate to entrust the regulation of advertisements relating to cryptos to the Financial Conduct Authority (FCA).
In addition, he intends to strengthen the risk warnings appearing on the advertisements, while prohibiting the incentives to invest. A potential abolition of sponsorship bonuses cannot be ruled out either.
The United Kingdom, more and more crypto friendly?
There are currently around 2.3 million cryptocurrency holders across Britain. Unfortunately, most local consumers are unaware of the risks associated with their investment.
Fortunately for them that their government comes to their rescue, knowing that the latter ” willing to support innovation in cryptoassets“.
Here are the words of Chancellor Rishi Sunak:
“Crypto-assets can provide exciting new opportunities, giving people new ways to transact and invest – but it’s important that consumers don’t find themselves selling products with misleading claims. We ensure that consumers are protected, while supporting innovation in the crypto-asset market.»
Moreover, the British executive recognizes thestablecoinslike “a more efficient means of paymentand reducing costs and waiting times in the context of a transaction.
The FCA would thus complete the regulatory actions already initiated by the Advertising Standards Authority. This institution has indeed undertaken to examine advertisements relating to cryptocurrencies to flush out problematic advertisements present in the public space.
Very recently we learned that Spain will sanction unauthorized influencers up to 340,000 euros. Today, you are informed that the United Kingdom is also embarking on the regulation of the cryptocurrency market on its territory. Could we say that Europe is on the way to the regulations so long awaited by theBeLeavers?
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The blockchain and crypto revolution is underway! And the day when the impacts will be felt on the most vulnerable economy of this World, against all hope, I will say that I had something to do with it