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…
Crypto Bloggers Under the Radar of UK Watchdog
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.
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Note: Beware of false claims or statements made intentionally by some crypto bloggers to promote the sale of cryptocurrency.