UK to Crack Down on Misleading Cryptocurrency Ads

© REUTERS / Dado RuvicRepresentation of the virtual currency Bitcoin is seen on a motherboard in this picture illustration taken April 24, 2020
Representation of the virtual currency Bitcoin is seen on a motherboard in this picture illustration taken April 24, 2020 - Sputnik International, 1920, 18.01.2022
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MOSCOW (Sputnik) - While the popularity of cryptocurrencies continues to rise, the understanding of what crypto is is actually declining, the UK finance ministry said on Tuesday as it moved to regulate crypto promotion to avoid consumer harm.
"Cryptoassets can provide exciting new opportunities, offering people new ways to transact and invest – but it’s important that consumers are not being sold products with misleading claims," British finance minister Rishi Sunak said in a statement.
The ministry said about 2.3 million people in the UK are thought to own a crypto asset but their lack of understanding of how digital tokens work poses a risk that the currency could be offered fraudulently.
The ministry said it would amend the Financial Promotion Order to cover the promotion of crypto assets, alongside conventional financial instruments, such as stocks, shares and insurance products.
Other European countries have recently moved to bring cryptocurrencies within the scope of their financial legislation. Spanish stock market regulator CNMV said on Monday that crypto ads must contain a disclaimer warning investors about potential losses.
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