To bring regulation on unfair crypto advertisements, the UK finance ministry released new guidelines.
In 2021, the Crypto industry saw a huge inflow of money and also resulted in huge profits for crypto investors. Besides all these, a surge in the bad actors also took place, where people tried their unique strategy to facilitate illicit activities through the promotion of crypto projects. To bring restrictions on the crypto-related advertisement, to ensure the protection of the Investors, the majority of the regulatory bodies are trying to bring better regulation and regulations over the promotion of unfair or illicit ways of crypto advertisement.
On 18 January, the UK finance ministry HM Treasury published new guidelines for all crypto assets/services/companies/businesses to bring a boundary.
Through the published guidelines, HM Treasury noted that the technology of blockchain and crypto industry is appreciable and the government of the UK is eager to welcome these innovations because of better use cases for example stablecoins use in fast transactions with high efficiency.
HM Treasury stated that new guidelines will bring a kind of regulation on all the crypto businesses. And under the scope of guidelines, all crypto-related promotion/marketing will take place. In short, all crypto promotion will be subject to the Financial Conduct Authority (FCA) rules first, after that they will be allowed to go into public promotion.
Rishi Sunak, chancellor of the exchequer, stated:
“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”
Under the guidance of FCA, the promotion of crypto assets will go under the category to figure out whether the promotion of that crypto asset will be better or not. For example, crypto-assets may be private or government-issued tokens.
Floki inu in the UK
Around a few months ago, the UK advertisement watchdog took an action against the Floki in the project team and claimed that advertisements of such volatile crypto assets are not safe for people.
However, the Floki team confirmed that they provided all the details of the project team and the necessary details that were needed to qualify to advertise the crypto asset.
So there are chances that on behalf of the recent controversy because of FLOKI inu advertisement in public areas, resulted in new rules.