The UK government on Monday, July 20, 2020, proposed a new set of rules to protect customer interest.
According to the proposal, the government wants FCA to regulate the advertising and promotion of the crypto assets under its existing regulatory framework.
The cryptocurrency firms are required to register with FCA if they are willing to promote and advertise financial investment plans.
UK FCA To Regulate Crypto Advertising – Report
In a recent development in the UK’s crypto space, the government has taken a step forward in bringing the crypto-related activities under the regulatory framework. However, the cryptocurrency regulations in the UK was very progressive in terms of complying with FATF guidelines and bringing them under the umbrella of taxes, the government has moved a step further on regulating the advertisements also.
In a Whitepaper, presented on Monday calls out for the crypto service providers to go through a regulatory passage before promoting their cryptocurrency products. The Economic Secretary to the Treasury & City Minister, John Glen said that they are required to keep track of the promotions as unaware people might end up losing money.
“That’s why we want to put more protections in place around such financial promotions, including the promotion of crypto-assets while continuing to ensure people have access to a wide range of products on the market,” he added.
A Proposal in Whitepaper
The whitepaper mainly consists of the proposal of FCA monitoring the promotional activities of the crypto service providers. The unauthorized firms and the regulated firms both need to obtain the consent of the FCA before any promotion or advertising of their financial investments.
According to recent data, the people in the UK are investing in digital assets heavily to get rich quickly. They believe Bitcoins and other major altcoins are the easiest and fastest methods to earn money. The data landed in an alarming time when the scams related to Bitcoin have surfaced the crypto space.
However, the proposals are under consultations and the last date for the consultations is October 25, 2020. What’s your opinion on UK FCA’s move to Regulate Crypto Advertising? Let us know via Twitter
Also read – Cryptocurrency Regulations in France