United Kingdom Enhances Consumer Protection Laws For Crypto Ads

The United Kingdom enhances all consumer protection laws for Bitcoin and Crypto ads so all of the crypto companies that advertise to UK Citizens will be governed by the new regulations for marketing their products so let’s find out more in the upcoming Crypto news.

The HM Treasury is now aiming for a proposal for better consumer protection for users of cryptocurrencies and similar products. The documents that we have today show that the city minister John Glen published a proposal to “strengthen protections around the promotion of financial products and crypto-assets.” Glen is a management consultant who is now a politician who has been in the British Parliament since the 2010 election.

As the United Kingdom enhances crypto regulation laws, this is not considered as a crypto AD ban. Instead, the politician calls for enhanced protection of the promotion of crypto-assets while “continuing to ensure people have access to a wider range of products on the market.” Glen said:

“It’s important that people can understand the financial products they see promoted. If adverts by unauthorized firms are misleading or don’t fully outline the risks, then people can end up losing money.”

In the latest proposal, the country’s Financial Conduct Authority is set to oversee all crypto-related ads:

 “Today’s proposals would mean that authorized firms would have to obtain specific FCA consent to approve the financial promotions of unauthorized firms.”

Glen pointed out that the vast quantity of products that are offered on the market as one of the reasons behind the regulatory scrutiny. With the FCA oversight, it can ensure such promotions are never misleading:

 “The fact they are often targeted towards retail investors underscores the importance of promotions being candid about the risks involved. This would mean that their promotion would be held to the samehigh standards for fairness, clarity, and accuracy that apply to traditional financial services promotions.”

The development came almost two years after the United Kingdom authorities noted crypto ads overstate the benefits and almost never warn of volatility risks, which is the fact that consumers can both lose and gain from their investments. Other surveys confirmed this as well as 35% of the British citizens had been swayed by crypto ads into purchasing tokens. In the meantime, the number of people using cryptocurrencies increased from 1.5 million to 2.6 million people.