Cryptocurrencies on the UK flag.
The Financial Conduct Authority (FCA), the British regulator, continues to put pressure on cryptocurrency companies that want to advertise their products in the UK. In a document published this Tuesday (4), the FCA has outlined new guidelines for cryptocurrency advertising.
Those who insist on promoting cryptocurrency and related products without authorization can be jailed for up to 2 years. Penalties, on the other hand, have no ceiling, that is, they are “unlimited”.
We will take strict action against the promoters [criptomoedas] Illegal to UK Consumers”FCA wrote. “This includes, but is not limited to, putting companies on our alert list, taking steps to remove or block any illegal financial advertising on social media websites, accounts and apps, and enforcement actions.”
London public transport has already been ‘invaded’ by memecoin
Cryptocurrencies peaked in October 2021, reaching record prices and attracting investors’ attention. One of them, Floki Inu, seized the moment to ‘invade’ public transport in London with aggressive marketing.
“Did the dog miss? Buy FLOKI.
Apart from investors, FLOKI’s advertising campaign also caught the attention of regulators. Since then, the UK has been trying to limit its citizens’ exposure to such products.
In a document published today, Tuesday (4), the FCA pointed out “Definition of financial incentives is broad”But he promised to review websites, mobile apps, social media and other forms of advertising.
“This applies even if the ad is not only aimed at UK consumers.”
This means that even ‘international’ publications cannot reach the British, leaving companies to find ways to limit the reach of their posts.
Firms can apply to the FCA for approval, but history shows that the likelihood of approval is low. As of 2020, 260 out of 319 requests have not been accepted.
In addition, it is worth noting that the UK has already banned advertisements from several brokers such as Cryptocom and Luno, the latter of which claims that it is “time to buy bitcoin”. There are many examples and the ASA is another body that oversees advertising.
Finally, the UK is concerned about the economic security of its citizens. However, unlike the US CVM, regulators have not received criticism from investors, perhaps providing clearer rules for cryptocurrency companies.
