Rising concern over a surge in ads promoting crypto assets, which are currently unregulated in the United Kingdom, has encouraged the government to formulate a plan to crack down on “misleading assets”.

The British government has taken necessary steps over enormous crypto ads that could potentially result in some financial crime. Cryptocurrencies have boomed in the country, with about 2.3 million UK citizens owning crypto assets. In line with this, the Financial Conduct Authority (FCA) is tightening the regulations on crypto ads, bringing them in line with the same standards as other financial products, including shares, stocks and insurance policies. UK chancellor Rishi Sunak implied that the government aims to counterbalance the booming crypto market, while ensuring consumer welfare to a “clear, fair and not misleading” investment. The Advertising Standards Authority has already banned a series of ads, stating that they are irresponsible, and have declared the “misleading crypto ads” issue as a “red alert” priority.

Other Countries

Meanwhile, Spain also aims to regulate crypto ads in the country. It permits the stock market supervisor (CNMV) to monitor ad campaigns that reach more than 100,000 individuals, including social media influencers. By mid-February, advertisers will need to report the ad content to the CNMV at least ten working days in advance. It is recommended that crypto ads contain warnings about the volatility and risks involved.

Singapore also aims to protect its investors by restricting the promotion of crypto trading. The Monetary Authority of Singapore‘s Assistant Managing Director, Loo Siew Yee, stated that even though Singapore supports the innovative application of cryptocurrency in the country, trading of crypto assets is associated with high risk, and it is not suitable for the general public. In line with this, operators of crypto ATMs in Singapore were forced to shut down their Bitcoin ATMs to comply with the MAS policy to eradicate cash-to-crypto terminals as part of the crackdown.

The crypto industry is booming, and many people have been enticed to join the ecosystem. Some take advantage of crypto ads to lure investors in. These three countries have taken precautionary measures to protect their investors and control financial offences.