The UK announced in a statement that it will set a set of regulatory, empowering rules to make cryptocurrency ads compatible with other traditional financial products.
UK government official website “Regulations will strengthen rules on misleading cryptocurrency advertising” in the form of a in the statement found.
The content titles within the scope of the draft law that the government plans to enact are as follows;
- Addressing misleading crypto-asset promotions,
- Align advertisements with other financial advertisements, making sure they are fair and clear.
- The new rules increase consumer protection while promoting innovation.
According to the UK’s research, as the popularity of cryptocurrencies and the area in which they spread globally, an increase is observed in the number of usage in the country. Currently, it is estimated that 2.3 million people in the country own cryptocurrencies. In addition, another information obtained in the research is that users’ knowledge about what crypto money is gradually decreasing. For this reason, the UK thinks that cryptocurrencies, which are the products of the newly developing global financial world, may become wrong and susceptible to abuse from the point of view of unconscious users.
Finance Minister Rishi Sunak said about the new empowering regulations:
“Cryptocurrency assets can provide exciting new opportunities by providing new ways for people to invest, but it is important not to sell products to consumers with misleading claims. We support the innovation of the crypto-asset market while ensuring consumer protection.”
This new legislation, which has been published, means that the UK government treats cryptocurrencies as part of financial promotions.
Towards the end of last year, the UK restricted the advertisements of crypto money platforms such as Coinbase and Kraken as part of a series of regulatory measures. Last week, the UK Advertising Standards Authority (ASA) banned two Crypto.com ads.