The UK financial regulators believe that current laws do not go far enough to protect consumers from misleading crypto advertisements. The regulator is now advocating a change. New proposals published on July 20 would, if approved, bring the promotion of certain types of crypto assets under direct regulation from the Financial Conduct Authority (FCA) for the first time. The FCA has been quite active in outing crypto companies that are operating without registering with required authorities.
Earlier, the Indian government launched a “vocal for local” campaign to promote the use of country made products.
“We need to put more protections around crypto ads.”
The UK’s Economic Secretary to the Treasury and City Minister said it is important that people understand the financial products they see promoted. If ads by unauthorized firms are misleading or don’t fully outline the risks, then people can end up losing money. He added, “that’s why we want to put more protections in place around such financial promotions, including the promotion of crypto while continuing to ensure people have access to a wide range of products on the market.” Currently, the rules that protect consumers from misleading ads for financial products in the UK require an unauthorized company that seeks to promote a particular product to have its promotion approved by an authorized counterpart. However, the government thinks it is not viable anymore.
Crypto regulations around the world get more strict.
Crypto regulations around the world have started to gain attention as regulators actively work on regulating the emerging crypto industry. The Financial Action Task Force had earlier proposed guidelines to regulate the crypto industry to its 37 member countries. Despite many countries taking an active approach for regulating the crypto industry, crypto regulations in most countries are still in a grey area. Countries like South Korea, Switzerland, and many others have taken a positive approach for regulating the cryptocurrency.