U.K. Proposes Tougher Rules to Stop Misleading Crypto Ads - BLOOMBERG
Crypto billboards, which have popped up across the London subway system, will come under tougher restrictions as the U.K. government seeks to stamp out false advertising.
The Treasury said on Tuesday that it plans to regulate crypto advertising like other financial products and ensure that promotions are “fair, clear and not misleading.”
The news comes a day after a similar announcement from Spain’s market regulator, which slapped controls on ad campaigns for crypto-assets by saying they must carry a warning to investors that they risk losing all their money.
“Research suggests that understanding of what crypto actually is is declining, suggesting that some users may not fully understand what they are buying,” the U.K. Treasury said in a statement.
Crypto has drawn the attention of regulators globally due to volatile price movements, as well as the complexity of the products and lack of consumer protection.
The U.K.’s Financial Conduct Authority has issued frequent warnings about the risks in crypto. Last year, a Instagram ad by celebrity Kim Kardashian drew the ire of Charles Randell, Chair of the FCA, who called for regulators to be given greater powers to protect consumers.
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The U.K. estimates that 2.3 million people in the country own crypto assets. The Treasury said the tougher rules will be phased in over six months once they’re finalized.