Regulation
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The UK government has announced ambitious plans to oversee cryptocurrencies. This is directly related to the desire of the state to become the world’s leading cryptohub. Notably, England’s key regulator, the FCA, issued a warning to major social networks to do more to protect the rights of retail consumers.
According to experts, the reason for such actions was a surge in the activity of well-known crypto bloggers who advertise dubious products. Representatives of the agency said that over 8,000 ads on the largest social networks were blocked last year, which is 14% compared to 2021.
FCA officials noted: “Uninformed persons should not provide advice on the prospects of a particular investment product.” In turn, FCA Executive Director Sarah Pritchard said: “This year we will continue to put pressure on individuals using large social platforms to promote dubious and high-risk assets in the field of investment.”
Since March last year, digital assets have been under the radar of the UK’s Advertising Oversight Service. Many industry-specific companies have received notifications regarding advertising campaigns in this segment.
If the conditional exchange intends to operate in the jurisdiction of the UK, then it must be mandatory tested for adherence to the concept of combating money laundering.
FCA representatives commented on this: “We had concerns that the advertising campaigns of some crypto firms, which included famous faces on social networks, were aimed primarily at vulnerable consumers with financial problems.”
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