As the UK ownership of cryptocurrency continues to grow, the government is planning to strengthen the regulatory framework for digital currency marketing.
It comes after the publishing of a consultation, which mapped out the government’s plan to bring the promotion of cryptoassets within the scope of financial promotions legislation.
In doing so, the government detailed its agenda for the promotion of qualifying cryptoassets to be subject to FCA rules in line with the same high standards that other financial promotions such as stocks, shares, and insurance products are held to.
David Carlisle, Head of Policy & Regulatory Affairs at Elliptic, following news this morning that the UK Treasury is set to crack down on ‘misleading’ crypto promotions, with government planning to give the FCA oversight of adverts in this growing regulatory pushback:
“These proposed measures aimed at protecting consumers will enable the UK to cultivate a crypto sector that is safe, but also innovative.
“Ultimately, innovation thrives where there is transparency and accountability, and where consumers can access new financial products with confidence and a clear understanding of the risks at play.
“The proposed approach is proportionate, placing the interests of consumers first but also creating a clear framework through which cryptoasset products can be advertised in a safe manner. This will be a boon to UK efforts to innovate through growth of the fintech sector.”
On promoting overhauling the regulation for crypto assets, the government also revealed it would allow for a transitional period as firms seek to adapt to new governance.
Chancellor of the Exchequer, Rishi Sunak emphasised: “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.”