Amid the growing popularity of cryptoassets in the UK, the country is observing a decline in the understanding of what crypto actually is. The UK government has shared concern that this lack of understanding might lead to products being mis-sold.
In today’s announcement the government set out a plan to bring the cryptoassets advertisement under the scope of financial promotions legislation. This means that the promotion of crypto assets will be subject to FCA rules and they will have to adhere to the same high standards that other financial promotions such as stocks, shares, and insurance products.
Around 2.3 million people in the UK are thought to be holding crypto assets, according to an estimate. This move will hopefully ensure that cryptoasset advertisements are “fair, clear, and not misleading.”
Cryptoassets can provide exciting new opportunities, offering people new ways to transact and invest – but it’s important that consumers are not being sold products with misleading claims.
We are ensuring consumers are protected, while also supporting innovation of the cryptoasset market.
Crypto trading has grown in popularity in the UK last year and with the need to regulate it. In December, the UK Advertising Standards Authority (ASA) targeted eToro and Coinbase for their non-compliant crypto ads, which were taken down.
The newly formed German government has also called for crypto regulation, including the topic in its coalition agreement.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
