AUS
NZ
UK
CA
USA
IND
Highlights
- Cryptocurrency frauds have skyrocketed in recent years as defrauders are taking advantage of consumer inexperience and limited knowledge.
- Some ads mislead consumers and do not give proper disclaimers about investment risk.
The UK’s financial market regulator, Financial Conduct Authority (FCA), plans to strengthen its existing laws regarding the advertisement of high-risk investment assets like cryptocurrencies. According to a recent survey, there is a multifold increase in fake crypto ads. Moreover, some ads are misleading consumers and do not give proper disclaimers about investment risk. As a result, the financial regulator probably could bring in new guidelines and crypto rules by the summer of 2022.
Of late, crypto market investors have been targeted with fake ads and fake interviews of well-known celebrities like Prince Harry and Meghan, Bill Gates, and others. Moreover, cryptocurrency frauds have skyrocketed in recent years as defrauders are taking advantage of consumer inexperience and limited knowledge about the cryptocurrency market.
Cryptocurrency investors should consider buying cryptos through renowned and registered exchanges to protect their assets. Also, investors should learn about the investment risk involved in cryptos and invest wisely in such highly volatile investment products.
© 2022 Kalkine Media®
Let us look at some of the crypto exchanges that operate in the UK:
Coinbase
It is one of the major and most popular crypto exchanges in the UK. It allows trading and investment in popular digital cryptocurrencies such as Bitcoin, Ethereum, etc. Investors can keep track of their positions and monitor the market through user-friendly mobile apps and web applications.
Most recently, the cryptocurrency ads run by Coinbase were banned by the UK advertising watchdog, Advertising Standards Agency (ASA), as the ads didn’t give a disclaimer about the investment risks involved in the crypto market.
Crypto.com
The crypto exchange allows users to invest in popular cryptocurrencies. It also provides the facility to earn interest on your digital assets.
The advertising watchdog, ASA, banned the company’s inaugural advert on the mobile application. The ads didn’t state the risk potential of crypto assets and promoted the unlimited purchase of cryptos using a credit card. The company voluntarily removed the advert after the concern was raised.
Binance.com
In terms of the number of client accounts and trading volume, Binance is one of the biggest exchanges globally. Traders and investors are attracted to Binance as it offers the lowest transactions charges and has a huge range of cryptocurrencies on its platform.
The finance market regulator, Financial Conduct Authority (FCA), had banned the company from conducting any activities. Also, the company’s advertisement has been stopped. Still, UK residents continue to operate and trade through various mediums on the exchange.
