The prominent monetary regulator of the United Kingdom called FCA (Financial Conduct Authority) recommended implementing more strict rules over the advertisement of high-risk investments like digital assets. The regulator was of the view that no permission should be granted to these companies for the promotion of crypto to people with less or no financial knowledge as well as experience at all.
The UK reinforces its standpoint regarding crypto
The UK government and the FCA are not considered to be considerably crypto-friendly because several measures have been taken by them to restrain the public from getting into the space of the digital assets for some time. On 18th January, Rishi Sunak (Exchequer’s chancellor) suggested a law placing crypto ads under the standards resembling those set for the rest of financial instruments such as shares and stocks. Particularly, the promotion of digital assets will just be permitted among the general population if there is no ambiguity in the provided investment details.
In a report of 19th January, it was announced by the FCA that the organization is eager to tighten those rules. The institution considers that just the people having considerable financial experience and knowledge should become a part of the market of digital assets. According to the watchdog, several new hazards can trouble the markets and the investors, thus there is a requirement for the implementation of adequate rules over the entire industry.
It added that the rules related to the rest of high-risk investments are now being proposed for the crypto assets. Contrary to the former stringent point of view about cryptocurrency, at present, the FCA acknowledged some of the merits thereof. It was noted by the agency that rapid growth is being witnessed in the case of the industry of digital assets. In addition to this, many advantages can also be provided by stablecoins in the matter of the macroeconomic network, businesses, and consumers.
The surging popularity of crypto among natives
Even though the United Kingdom comes in the category of the countries having stern regulations, the UK-based citizens are being attracted towards investment tools like digital assets. In the recent year, the FCA disclosed that up to 78% of the natives took notice of Bitcoin or altcoins and over 2M people became the crypto holders.
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