The United Kingdom government has announced intentions to tighten regulations on cryptocurrency advertisements in an effort to "protect consumers from misleading claims.
Earlier this week, the Treasury announced that cryptocurrency advertisements would be "brought into line with traditional financial advertising, ensuring they are fair and clear," and that the "new rules would strengthen consumer safety while stimulating innovation."
"Some users may not completely understand what they are purchasing," according to a Treasury statement. The Treasury estimates that 2.3 million people in the United Kingdom possess crypto-assets. Because of this, there is a risk that these products will be mis-sold," the report stated.
Consumer protection regulations "would limit the risks of consumer harm by ensuring that consumers have the relevant information to make informed investing decisions," according to a press release.
Earlier this month, the UK Advertising Standards Authority (ASA) slammed the cryptocurrency sector for "widespread" problems with deceptive and irresponsible advertisements, delivering penalties against businesses such as Coinbase and eToro.
With advertising that included online campaigns and endorsements from social media celebrities, the Advertising Guidelines Authority found seven corporations to have violated UK ad industry standards, according to the organization.
By fLEXI nEWS