Britain is to crack down on "misleading" advertisements for cryptoassets, which often target retail consumers with poor knowledge of the risks, the finance ministry said on Monday.
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Rising prices of of cryptocurrencies such as bitcoin and ether have been accompanied by a surge in advertising for such assets, particularly in London, prompting repeated warnings from Bank of England that investors they could lose all their money.
Advertising of cryptoassets will be brought within the scope of existing financial promotions legislation, the ministry said.
This means that promotion of qualifying cryptoassets will be subject to rules set by the Financial Conduct Authority (FCA), holding them to the same standards as financial promotions for stocks and insurance products, the ministry said.
Only a business regulated by the FCA or Bank of England would be allowed to issue their own promotions for cryptoassets, forcing unregulated firms to pay a regulated company to approve their advertisements.
Industry body CryptoUK said it welcomed any clarity and guidance on promotions and will seek dialogue on how the measures are implemented.
