On top of some of the harshest restrictions for crypto companies looking to receive a licence to operate in the UK, lawmakers have added further barriers on crypto advertising.
Come to the UK where restrictions are increasing
When the now Prime Minister Rishi Sunak announced that the UK wanted to become a hub for digital asset technology back in April of this year it was perhaps to be expected that the country would make it more attractive for crypto companies to set up operations in the country.
However, since the announcement it might be argued that the UK regulator, the Financial Conduct Authority, has put the regulatory bar so high that most crypto companies that were thinking to operate in the UK have had to think again.
The Treasury has also been a long time opponent of the UK crypto sector, saying back in January of this year that it planned more advertising rules in order to protect consumers from fraudulent crypto companies.
UK lawmakers took this step on Thursday when an amendment to the Financial Services and Markets bill (FSM) was approved, adding more restrictions on crypto companies advertising their services to the UK public.
In an article on the subject for CoinDesk it was stated that the bill would seek to:
“make crypto firms comply with the country’s financial promotions rules. These rules would require any type of advertisement or invitation to the public to engage in an investment activity targeting consumers to be approved by an authorized entity, according to industry representatives.”
So it appears that the few crypto companies that are able to put themselves through the extremely exacting standards required by the regulator and receive a licence, are then not able to promote themselves in order to gain business.
Opinion
The UK seems well and able to shoot itself in the foot at every available opportunity these days. The recent gilts market implosion which led to a spectacular fall for the pound is evidence of this.
It can only be accepted as truth that politicians at the very top do want to see the UK become a hub for crypto and become the centre of Europe in this regard.
However, it does appear astonishing that at the same time as trying to attract crypto companies to UK shores, some of the harshest regulations are put in place which are bound to do exactly the opposite.
The UK needs to make up its mind on the subject. Will it play the heavy-handed role of protecting its citizens at all costs, or will it carefully allow these same citizens to invest in a sector that has huge potential upside? Which is more than can be said for a precarious UK economy which is going downhill fast.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Sourced from cryptodaily.co.uk.
Written by Laurie Dunn on 2022-11-04 12:45:00.
