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- Crypto advertisements should not contain certain terms in the United Kingdom
- MPs asked the FCA to limit the use of the word “invest” and “investment” by crypto firms for promotional purposes
- UK politicians accused the financial authority of helping criminals
Crypto assets have attracted the globe with its notable gains. Several altcoins have made their investors billionaires. Following the utility of the assets, lawmakers in the United States are also observed investing in the asset class. However, it seems like the United Kingdom politicians are yet bearish on digital currencies. Recently, the head of the Financial Conduct Authority (FCA) cited that the agency is expecting new powers for regulating cryptocurrency advertisements. Moreover, politicians in the nation believed that digital assets are not an investment.
UK politicians asks FCA to limit crypto advertisements
According to a report published by the news outlet, The Times, on Thursday, Members of Parliament (MPs) at the treasury select committee have called upon the FCA. The members asked the authority to limit the use of the word “invest” and “investment” by crypto firms for promotional purposes.
The MPs told Nikhil Rathi, FCA chief that the use of the phrase “your investment” often portrays that these are on par with a FTSE 100 firm or a unit trust. Hence, the politicians deemed that these wordings provide the wrong impression about the asset class as a type of investment.
MPs accused FCA of helping criminals
According to Harriett Baldwin, a Conservative MP for West Worcestershire, the financial authority shows instability to prevent fraudulent promotions. While taking special exception the politician accused the authority of helping criminals.
Baldwin further explained that the FCA’s website actually publishes a list of unregistered crypto assets businesses for anti-money laundering (AML) purposes. The listing meant to be helpful to someone who just wants to launder funds.
Following the accusations, Rathi assured the MPs that the regulatory agency is currently looking into the matter and is expecting new powers in terms of regulating digital assets advertisements. Moreover, Rathi explained that unless those new powers come into practice there won’t be much that the FCA could do. FCA would soon gave discussion regarding what the wording should be.
Cryptocurrency shouldn’t be entitled to compensation
Charles Randell, the FCA chairman had previously expressed concerns over the wordings of the Floki Inu advertisement on London buses. At the time, the FCA admitted nothing much could be done beyond cautionary warnings for consumers. Moreover, Rathi also cited that the authority is considering dismissing any requests for compensation under the Financial Services Compensation Scheme if individuals lose money.
According to Rathi, anything related to digital assets should not be entitled to compensation under so that consumers are clear about that when they are investing.
