Huw Jones

LONDON, (Reuters) – Britain is going to clamp down on misleading advertisements about crypto assets that could cause harm for consumers, according to the Finance Ministry on Monday.

London is the epicenter of cryptocurrency advertising, with bitcoin being one example. There are concerns over its potential impact.

Although the Finance Ministry stated that around 2.3 Million people have cryptoassets in Britain, it was found that research indicates that many users aren’t fully understanding what they are purchasing.

“Cryptoassets can provide exciting new opportunities, offering people new ways to transact and invest – but it’s important that consumers are not being sold products with misleading claims,” Britain’s finance minister Rishi Sunak said in a statement.

The finance ministry set out findings https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1047232/Cryptoasset_Financial_Promotions_Response.pdf from a public consultation on promotions for cryptocurrencies like bitcoin.

The ministry stated that advertising cryptoassets would be included in existing legislation for financial promotion.

The Financial Conduct Authority will set rules for the promotion and sale of qualified cryptoassets. They are expected to adhere to the same standards that financial promotions for stocks or insurance products.

If a business is not authorized by the FCA, Bank of England or the Ministry of Finance, they cannot promote crypto assets.

When parliamentary time permits, secondary legislation will be introduced to make the modifications effective.

In addition to laying out broad proposals last year for regulation of cryptoassets (and stablecoins), the government will also announce next steps.