United Kingdom’s Financial Conduct Authority(FCA) will launch a digital marketing campaign worth £11 million to warn people about the risks associated with crypto investments. The regulator made its intentions known through a speech delivered by its chief executive at a webinar on Thursday.
During a webinar titled “Our Role and Business Plan”, FCA CEO, Nikhil Rathi announced that the agency is creating a $15.2 million(£11 million) fund to warn investors about the dangers associated with cryptocurrencies.
In the last few months, the UK has become progressively stricter on the operating standards of the crypto industry. Just a few days back, the country’s Advertising Standards Authority(ASA) identified promotions related to digital assets as a “red alert” priority, while vowing action against irresponsible and misleading crypto ads on social media and other online platforms.
So far, the independent advertising regulator has already ordered action against two crypto exchanges -- Coinfloor and Luno.
However, as per a survey conducted by the FCA, ads have little impact on a crypto buyer’s decision-making process. But those who do base their investments on advertisements generally face worse outcomes.