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The United Kingdom’s watchdog The Financial Conduct Authority (FCA) has said that online financial advertisements related to cryptocurrencies should be regulated. Indeed, FCA has been at the forefront of investor protection, especially in the case of cryptocurrencies.
Britain’s FCA Wants to Regulate Crypto-Related Ads
Speaking at the Cambridge International Symposium on Economic Crime, FCA Chairman Charles Randell highlighted the regulatory agency bringing the promotion of cryptocurrency tokens under its scope, saying:
“The potential level of consumer harm that these purely speculative tokens bring raises the question of whether the activity of creating and selling the tokens themselves should be brought within FCA regulation.”
While Charles Randell says that people may think that the internet is impossible to regulate, there is no doubt that it has also enabled businesses to innovate and grow in ways that serve with responsibility. Thus, taking into account the increased importance of online lives, the FCA Chairman said:
“We can’t allow online businesses to operate in ways we wouldn’t tolerate with any other business. The tide of regulation is turning all over the world, and online platforms should expect a future where regulation addresses the significant risks they pose in the same way as other businesses. Same risk, same regulation. That includes rules which protect people from investment fraud and scams.”
FCA Wants to Reduce Harm Over Crypto Promotion
Citing two cases, the Financial Conduct Authority said that they have the power to take action in terms of reducing harm from crypto asset promotions and stopping contagion at authorized firms from unregulated activities in digital tokens.
Earlier, the regulatory agency had banned Binance crypto exchange from undertaking any regulated activity in Britain, citing concerns over Binance’s internal controls inability to prevent money laundering activity on its platforms. Later, the crypto exchange said it was fully compliant with the FCA's requirements.