The UK government officially decides to bring crypto ads under tighter legislation. It’ll also help crack down the misleading, counterfeiting, fraudulent cryptocurrency advertisements.
Meantime, Spain is also planning to tighten its security regarding cryptocurrency advertisements. One of the country’s stock market supervisors, CMNV, revealed the news.
Ironically, both nations came forward with the decision to the media on Tuesday.
However, it’s yet to understand the effect on the market. The entire crypto market continues to fall without showing any surges. In fact, Bitcoin is currently staying under the red zone.
Other associated cryptos like ETH, XRP, LTC, DOGE, SOL are also declining. Experts denoted the emergence of the Omicron variant for the ongoing crisis.
Likewise, tighter advertisement regulations should affect the prices negatively.
Crypto ads are booming, with many new altcoins entering the market. Again, not all digital coins are interested in doing business. Investors lost millions over multiple scams taking place throughout 2021.
UK Finance Minister Rishi Sunak decided to apply the current financial promotions rules. The rules will force every firm to be authorized by the regulators. Otherwise, the companies can no longer promote their services, products, or trades.
Many British criticized the FCA (Financial Conduct Authority) for not taking action. It’s the authority to regulate financial firms across the UK. The watchdog will soon start consulting on the Tuesday proposals.
But the statement also recognized crypto assets as a new opportunity provider. And the legislation will make sure consumers can’t buy products on misled claims.
Spanish authority is determined to make crypto ads “clear, impartial, balanced, non-misleading”. And the new rules should hit the country by February this year. The new regulations will also require the risk info prominently from the firms.
The rule is also applicable for third-party advertising. Therefore, it goes for anyone promoting crypto assets through digital platforms.
Spanish authority scolded former football star Andres Iniesta for promoting Binance. He did so through his Twitter and Instagram accounts last November. Stock market regulator CMNV suggested he should go thoroughly before recommending cryptos