The UK Treasury Secretary said that advertising of cryptocurrencies should be controlled by the FCA or the Bank of England and comply with the standards that apply to insurance products.
UK Treasury Secretary Rishi Sunak has taken the initiative to ban the uncontrolled distribution of cryptocurrency advertising. According to him, more than 2.3 million Britons already own crypto assets, but they have become less understanding due to misleading ads.
The minister said that he increasingly sees advertisements for bitcoin in London. This advertisement, Sunak believes, can encourage citizens to trade crypto assets, the intricacies of which they may not understand.
The senior official admits that cryptocurrencies provide people with new investment opportunities. But it is important, the minister is convinced, that consumers do not come across fake promises and offers to engage in dubious financial activities.
The head of the Ministry of Finance believes that in order to protect users, any advertising of digital assets should be subject to British legislation on financial markets. Cryptocurrency advertisements must comply with UK Financial Conduct Authority (FCA) requirements that apply to promotions and insurance products. It will be possible to promote crypto assets, the minister promises, only if the advertiser has received permission from the FCA or the Bank of England.
According to last year’s FCA data, from April 2020 to March 2021, the number of complaints about fraudulent projects related to investments in cryptocurrencies increased by 222%. The regulator began to inform British citizens about the dangers of investing in crypto assets, and the implementation of this initiative cost the FCA $15 million.
In December, the UK Advertising Standards Authority (ASA) banned cryptocurrency firms Coinbase Europe, Kraken, eToro, Luno Money, Exmo Exchange and Coinburp from advertising services because their ads “lack information about the risks of investing in cryptocurrencies.”