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FCA to get new powers to crack down on misleading crypto advertisements

FCA crypto skills shortage
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The UK Government has published plans to strengthen the rules on misleading cryptoasset advertisements.

The new rules bring the promotion of cryptoassets within the scope of financial promotions legislation, subject to FCA oversight in line with the same standards held for stocks, shares, and insurance products.

Around 2.3 million people in the UK are now thought to own a cryptoasset with their popularity rising – but research by the FCA suggests that understanding of what crypto actually is is declining, suggesting that some users may not fully understand what they are buying.

Chancellor of the Exchequer, Rishi Sunak says: “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. We are ensuring consumers are protected, while also supporting innovation of the cryptoasset market.”

The Government intends to put in place a six-month transitional period from both the finalisation and publication of the proposed Financial Promotion Order regime and the complementary FCA rules

The announcement complements broader proposals on cryptoassets and stablecoins set out via the Government’s consultation on a regulatory framework for stablecoins last year, with next steps due to be announced in due course.

Source: Finextra
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