Britain’s regulator aims to tighten crypto promotions
by: Dynasty GI2022-01-26
The UK’s financial regulator, the FCA, is proposing to restrict the marketing of certain types of crypto to stop firms from promoting products without assessing the user’s knowledge and experience.
According to a statement by the Financial Conduct Authority, the aim is to only allow customers access the market knowingly by aligning crypto assets with other high-risk investments that are classed as ‘Restricted Mass Market Investments’.
The move wouldn’t stop crypto businesses from promoting their products, but they would need to be targeted at certified high-net-worth investors, certified sophisticated investors, self-certified sophisticated investors or certified ‘restricted’ investors. The proposals are going through a consultation process due to end on March 23rd, with the final plans likely to be completed in the middle of the year. As they stand, NFTs would not fall under the FCA’s promotion rules. The founder and CEO of Dynasty Global, Eduardo Carvalho stated:
"We need to educate the population when it comes to digital assets, the levels of risk and the different types of cryptos in the market so that people can make informed decisions whilst being protected from more aggressive or questionable products being made available to the market. In this sense, it is just like other financial products: ‘get rich quick’ products must be seen with considerable suspicion and highly complex products must be traded with considerably more care."