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The UK government has announced plans to impose new rules on cryptocurrency ads to make sure they are fair, clear and not misleading to consumers. The rules will be enforced by the financial ethics authority (caf).
The United Kingdom is going to impose new rules on crypto advertisements.
The UK government announced on Tuesday its intent to impose new rules on cryptocurrency advertising to "protect consumers from misleading claims". The announcement reads as follows:
New rules will enhance consumer protection while supporting innovation.
The chancellor of the british exchequer, rishi sunak, commented: "crypto assets can provide exciting new opportunities, provide new ways for people to transact and invest, but it is important that consumers do not sell products with misleading claims."
The new rules will integrate the promotion of crypto assets within the scope of the financial promotion legislation to ensure that they are "equitable, clear, and not deceptive," the government said, elaborating:
This means that promotion of eligible crypto assets will be subject to cfa rules, in line with the same high standards as other financial promotions such as stocks, shares, and assurance products.
He stressed his desire to support innovation, the uk government noted that "research undertaken by the cfa has highlighted the potential for misleading advertising of crypto products to harm consumers."
In the context of the UK's Financial Services and Markets. Act 2000, a company may not promote a financial product without the authorisation of the fca or the prudential regulatory authority (pra), or the content of the promotion is approved by an organization that is, the government wrote down, adding:
It will give the financial ethics authority the appropriate powers to regulate the market more effectively.
Recently, the United Kingdom's Advertising Standards Authority (ASA) suppressed deceptive crypto advertising. In December, the British advertising watchdog banned seven crypto ads for Papa John’s Pizza, Coinbase, Kraken, Etoro, Luno, Coinburp, and Exmo. In November, it cracked down on ads for cryptocurrency floki inu (FLOKI).
What do you think about the U.K. government putting crypto ads under the jurisdiction of the CFA? Let us know in the feedback section below.
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