UK Government Moving to Restrict Cryptocurrency Promotions
Under the U.K. government's proposals, unauthorized companies would need explicit approval to legally market cryptocurrency products.
Jul 20, 2020 at 2:32 p.m. UTCUpdated Aug 19, 2021 at 3:12 a.m. UTC
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The U.K. government is looking to increase oversight into cryptocurrency promotions in order to protect investors.
- HM Treasury said Monday it was looking to clamp down on "misleading and inadequate promotions" that endangered retail investors.
- Brought forward by John Glen, the City Minister responsible for the U.K.'s financial services sector, the proposals, published Monday, call for companies to pass through a "regulatory gateway" before being approved to promote cryptocurrency products.
- This follows a 2018 report from the government's "Cryptoassets Taskforce," which said misleading advertisements and promotions for cryptocurrency products was a key investor protection issue.
- Under the proposals, the Financial Conduct Authority (FCA) would become the body responsible for overseeing digital asset promotions.
- Any firm looking to approve the financial promotions from unauthorized firms would first need to have the consent of the FCA.
- In a statement, Glen said existing regulation had failed to keep up with the expanding number of products coming to market.
- He added the proposals would bring crypto product promotions up to the same levels as those for other asset-classes.
- The proposals are currently in the consultation phase, which will continue until Oct. 25.
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