The Treasury has this week published two consultation papers proposing to give the Financial Conduct Authority (FCA) more control over unauthorised firms in the investment market and the marketing of unregulated cryptoassets.
The HM Treasury warned that the current safeguards in place fell below standards, so have proposed bringing the promotion of certain types of crptoassets under the FCA’s regulation for the first time.
They will require:
This move will protect consumers that are risk of losing money due to misleading adverts and will mean that their promotional products will have the same high standards, clarity, accuracy and fairness that traditional financial services promote.
Long overdue. It still amazes us that the risk of loss when dealing in cryptoassets or spread betting or any other highly geared investment can be advertised without the same risk warnings and clarity that even a simple ISA must have. Add to this, the blatant messages on television late in the evening urging us to bet, bet, bet and get a few free credits to start are outrageous.