2022 has begun with more uncertain regulatory concerns, which have come as no surprise to crypto players.
Crypto critics, and members of Parliament of the United Kingdom, are lobbying the government to take tougher regulations on the flourishing digital currency investments, including cryptocurrencies and non-fungible tokens (NFTs).
This move is due to the growing concerns of vulnerable young people losing money and the need to protect investors.
Some of the largest football clubs globally, online influencers, and individual players have been advertising digital artworks and crypto-assets such as fan tokens.
Though no agency has the mandate to regulate crypto assets in the British countryside, the promotion of fan tokens and digital artworks is lightly regulated by the Advertising Standards Authority (ASA).
Push for tougher regulations
As reported by iNews, the MPs and campaigners are pushing for a hardline stance on promoting digital assets.
A conservative party politician and the current member of parliament for North West Durham, Richard Holden, has called for the differentiation of gambling products and financial instruments, referring to the ads as Wild West.
Matt Zarb-Cousin, the former top aide to Jeremy Corbyn and an aspiring MP, said that the vague promotion by soccer teams would destroy people’s lives while disguised as empowerment.
Financial entities in the country, including the Bank of England (BoE), have also been lobbying for cryptocurrency trading monitoring and regulation, with BoE planning to hasten the discussions between global financial regulators.
Following a discussion that concluded in 2020 regarding crypto regulation, the UK’s Treasury Department is preparing its response on the matter.
The treasury plans to protect the consumers by ensuring fair and clear crypto assets promotions and meeting the set standards required for payment methods.
UK’s strained relationship with crypto industry
Over the last year, the United Kingdom has approached the crypto industry with doubt.
Early 2021, the Financial Conduct Authority (FCA) issued five concerns about cryptocurrencies, including misleading advertisements, volatility, and foreseen lack of investor protection.
In September, the authority cracked down on Binance, one of the most popular global crypto exchanges, accusing it of operating without proper documents, license, and headquarters.
Although Binance has hinted at efforts to repair the relationship with FCA, their efforts have not borne positive results.
ASA has also not been left out when it comes to controlling crypto activities. It has scrutinized the advertising strategies of Coin, eToro, Papa John’s, and other companies that have been involved with crypto.
Recently, Arsenal FC was banned from advertising its token fan ads by the advertising watchdog, ASA.
The fan token ads ban was associated with undervaluing crypto investments and misleading inexperienced fans.
ASA is expected to release new guidelines to crypto companies on how they will market their assets without infringement problems.
