He The UK government believes that current rules are insufficient to protect consumers of misleading cryptocurrency announcements and suggests a change.
New proposals released on July 20, if approved For the first time, they would advertise certain types of crypto assets under the direct regulation of the Financial Conduct Authority (FCA).
The Secretary of Commerce of the Department of Finance and Minister for the City of the United Kingdom John Glensaid:
“It is important for people to understand the financial products being advertised. If the ads from unauthorized companies are misleading or do not fully explain the risks, people may lose money, so we want to better protect these offers.” financially, including promoting crypto assets while ensuring that people have access to a wide range of products on the market. “
The current UK financial messaging legal framework
The rules that currently protect consumers from misleading advertisements for financial products in the country They require that any unauthorized company that tries to advertise a particular product has the approval of an authorized counterpart.
However, the UK government is now concerned about the spread and diversity of new financial instruments These requirements are inadequate and can no longer offer a sufficiently strong guarantee.
Two new proposals submitted on July 20 require this Authorized companies obtain the express approval of the FCA to approve the financial offers of their unauthorized colleagues. The introduction of this requirement is intended Strengthening the institution’s direct oversight of possible announcements.
Since crypto advertising is not currently regulated, Britain is trying to expand the scope of its financial support program to certain crypto assetsso that “its promotion is carried out with the same high standards of fairness, clarity and precision that apply to the promotion of traditional financial services.”
The UK authorities are striving for a broader and more comprehensive approach to crypto regulation
As Cointelegraph previously reported, The FCA recently issued a statement asking all local crypto entrepreneurs to register with the agency. before June 30th.
The registration guidelines include a number of specific compliance fees, mainly related to Measures against money laundering and terrorist financing.
All UK operators have until mid-January 2021 to process their applications. There are also new requirements for traditional fintech operators to process a new application to the authority.