UK Advertising Standards Authority (ASA) Will Prevent Misleading cryptocurrency Investment Marketing
The UK Advertising Standards Authority (ASA) will tighten controls over cryptocurrency advertising, the Financial Times reported .
According to the publication, the regulator will suppress the publication of misleading advertising of investments in cryptocurrency assets. The ASA will focus on Internet platforms and social networks.
The ASA has given cryptocurrency a “red hazard rating” in financial advertisements, said Miles Lockwood, director of complaints and investigations at the agency.
The tightening of control over cryptocurrency advertising is associated with a warning from the British financial regulator (FCA), which was issued at the end of June.
FCA warned of the dangers of investing in crypto assets. The department notes that most of the companies offering such services are not licensed in the UK, so investors will not be able to contact the financial ombudsman and claim compensation for losses.
The FCA also stated that Binance, the world’s largest cryptocurrency exchange by trading volume, is not permitted to operate in the country. According to the regulator, Binance.com service provider is Binance Markets Limited, a subsidiary of the Binance Group, which is not permitted to operate in the United Kingdom.
Since then, two major banks Santander UK and Barclays have banned UK customers from transferring funds to Binance.
