The UK government has joined Spain, Singapore, and India, in cracking down on misleading cryptocurrency advertising. The government announced today that it intends to tighten fraudulent digital currency promotions regulations.
The UK Treasury published a consultation response, stating that proposed legislation will also provide the UK's financial watchdog, the Financial Conduct Authority (FCA), the authority to regulate the crypto market.
According to the Treasury, approximately 2.3 million people in the UK own crypto-assets, growing their popularity.
"While most crypto assets currently use distributed ledger technology (DLT), it might be that this changes as the technology and industry evolve," the consultation response stated. "Therefore, the government proposes to remove the reference to DLT from the definition of qualifying crypto assets."
The announcement also confirmed that the government plans to establish a six-month transition period between finalising and publishing the planned Financial Promotion Order regime and the FCA rules.
Chancellor of the Exchequer, Rishi Sunak, said that:
"Cryptocurrency assets 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. We are ensuring consumers are protected while also supporting the innovation of the digital asset market,"