UK FCA to regulate misleading crypto ads
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TL;DR Breakdown
• Regulators in the UK believe that crypto advertising could be misleading.
• Spain and Singapore do not tolerate misleading crypto promotions.
The beginning of 2022 has come with more strongly felt crackdowns on cryptocurrencies, and more so in countries like the UK. Recently the regulatory authority decided to join countries like Spain, India, and Singapore to regulate misleading crypto ads.
The Bank of England announced that FCA, the highest regulatory authority, will have the power to oversee cryptos ads. This increases the possibility of the country’s regulators creating more laws that could hamper virtual free trade in the coming months.
Crypto regulators in the UK reaffirm their ideals
The UK is preparing to reaffirm its ideals against crypto. This occurs due to the latest scams that have been generated in the market.
Regulators believe that 2 million citizens have cryptos, which leaves room to say that its adoption has grown in recent months. However, the lack of information about cryptos has led to increased scams through illegitimate companies and fraudulent advertising.
Control agents in the UK will seek to introduce cryptos in the legislative field to apply financial advertising laws. Simply put, regulators want crypto advertising-free from the FCA to avoid false, improper, or misleading promotions.
According to the broker Rishi Sunak, cryptos offer good opportunities to earn money, but it would be good if their market met advertising standards. Sunak believes that the average investor should avoid misleading advertising that affects his trading experience. The agent concludes by saying that his objective is to protect the investor against a financial market in full growth.
Spain and Singapore against false crypto advertising
The UK seems to follow the same line in crypto regulation that Spain and Singapore show in their laws. Recently the Spanish regulators spoke about false crypto advertising and the imbalance it causes in the market. On the other hand, the Singapore government thinks that crypto promotion should be balanced, clear, and precise in the message they seek to send.
Spain seeks to apply some laws against crypto advertising in February. However, the national agency clarifies that these laws are not regulatory but are simply control and protection measures for the investor.
Singapore, for its part, has decided that crypto promotion shouldn’t be easily featured on TV. Regulators believe this advertising is misleading and leaves the investor with many questions. Recently, the MAS agency politely asked the DPT server to refrain from advertising.
India has been against crypto advertising and an extra motivator for the UK’s measures. Regulators in the Middle East are concerned about ads where the exchange or crypto servers promise unrealistic profits to hobbyists.
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