FCA warns crypto firms against misleading ads

By: Ali Raza
Ali Raza
Ali was a News Reporter at Invezz covering the cryptocurrency markets and blockchain industry. He has 8 years of… read more.
on Jan 19, 2022
  • The FCA has warned crypto firms against promoting misleading ads.
  • The Advertisement Standards Authority has previously blocked ads from Coinbase, and Floki Inu.
  • Singapore has also warned crypto firms against advertising in public spaces.

The UK financial market regulator, the Financial Conduct Authority (FCA), has been stern in regulating the booming crypto sector. The FCA has now announced that it will be cracking down on misleading crypto advertisements.

The regulatory body has warned about the immense risks associated with the crypto industry, saying that those investing in the sector should be prepared to lose all their money.

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FCA cracking down on crypto ads

The FCA will not have the authority to monitor crypto ads and ensure that they comply with the set framework. This is not the first time the UK is cracking down on ads related to the cryptocurrency sector.

Last year, the UK Advertising Standards Authority and other relevant regulatory bodies warned Floki Inu against an ad promoted on London’s public transport system. The body noted that the ad failed to inform the public that crypto investments were risky.

The authority has also banned ads from Coinbase and Papa Johns, noting that they were taking advantage of the inexperience of the public in matters related to cryptocurrencies. An ad by the Luno crypto exchange was also blocked for failing to warn people about the risk of buying Bitcoin.

Despite failing to have an established and clear crypto regulatory framework, the FCA has been stern in regulating firms operating in the crypto space. The exchange issued a warning to Binance, with the exchange required to state on its website that it is not regulated by the FCA.

Singapore is also cracking down on crypto ads

Singapore is also cracking down on ads related to the cryptocurrency space. The country barred firms either regulated or in the transitional period from advertising in public spaces. These firms have been banned from advertising in broadcast media, print media and public spaces.

The Monetary Authority of Singapore (MAS) stated that these firms have only been authorized to advertise on their native websites and mobile applications. This will protect investors who do not have adequate information regarding the cryptocurrency sector. The MAS has been praised for having a clear crypto regulatory framework.

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