Cryptocurrency advertisements have long been subjected to intense debate. Many politicians have called for a ban on these advertisements, while others have mandated a statutory warning along with the ads. In the most recent development, a member of parliament from the UK has called for the removal of words like ‘investment’ and ‘investor’ from cryptocurrency ads.
Harriett Baldwin, MP from West Worcestershire, has also accused the FCA of enabling misleading crypto ads. According to him and many other MPs, using words like investment in crypto ads give them undue credibility. Many unaware customers might jump onto the crypto bandwagon without realizing the true cost of it and the risk attached. While the MPs wanted the FCA to take immediate action, FCA chief Nikhil Rathi has assured that the regulatory body is looking into the matter.
While many do not agree with the traditional definition of ‘investment’ and want crypto firms to be able to use that word, others disagree. According to the group of MPs calling for a removal of these words and phrases, it gives an illusion of regulatory certainty to crypto investment products. A few days back, FCA chief Nikhil Rathi had said that cryptocurrency investments do not fall under governmental compensation schemes. While there has been no talk of banning crypto in the UK, the tide is surely flowing in that direction. However, a ban may not be feasible considering the huge potential of the sector. The solution lies in educating buyers about the risks of cryptocurrency and letting them make informed decisions.