Crypto News: The UK government recently announced to set ambitious plans to regulate cryptocurrency activities in the country. Now, the Financial Conduct Authority (FCA) has warned social media giants to do more “to protect consumers.” The reason behind this is a surge in misleading product promotions by social media influencers, including crypto bloggers.
The FCA revealed, more than 8,000 misleading adverts on social media platforms like Instagram, YouTube, and Facebook were blocked by the UK financial watchdog in 2022, up 14% from the year before.
Calling out all the tech companies, the FCA said, “Unauthorized individuals should not advise people on the merits of certain investments.” Adding to the statement, Sarah Pritchard, FCA executive director said “This year, we will continue to put pressure on people using social media to illegally promote investments which put people’s hard-earned money at risk.” Read More Crypto News Here…
Since March 2022, cryptocurrency has been the under the radar of the UK’s advertising watchdog. Many cryptocurrency companies/exchanges got enforcement notices as part of a regulatory crackdown on promotions in the industry.
To keep their servicing going, all cryptocurrency exchanges need to clear anti-money laundering reviews. If they fail to pass, then they have to wind down their crypto operations in the UK.
“We had serious concerns that the firm’s financial promotions, which involved social media influencers, were targeting vulnerable consumers with significant debt,” the regulator said.
Regulators have also proposed limiting crypto ads while speeding up the removal of harmful adverts by unregulated groups and individuals. Although the FCA does not have a say in cryptocurrency regulation, it still plays a pivotal role by providing oversight of most of the sector’s marketing.
Also Read: Bitcoin Miner Marathon Digital Sold 2x More BTC Than Minted in January
Note: Beware of false claims or statements made intentionally by some crypto bloggers to promote the sale of cryptocurrency.
BNB-based decentralized exchange (DEX) Aster has come into the limelight recently, this time facing integrity…
Spot Bitcoin ETFs saw nearly $3.3 billion in net inflows last week, the 2nd largest…
Michael Saylor hinted that Strategy would not be making its routine Bitcoin purchase this week.…
Crypto experts have begun to make bullish projections for Pudgy Penguins’ native token, PENGU. This…
ASTER has announced that the roadmap for its second airdrop phase is set to begin…
El Salvador is now sitting on $482 million in unrealized gains in its Bitcoin holdings.…