U.K. Treasury Increasing Cryptocurrency Ad Regulations

The U.K. Treasury said Tuesday (Jan. 18) that it plans to regulate cryptocurrency advertising like other financial products and ensure that promotions are “fair, clear and not misleading,” according to a Bloomberg report.

That includes the crypto billboards that have recently been spotted along the London subway system, the report says.

“Research suggests that understanding of what crypto actually is is declining, suggesting that some users may not fully understand what they are buying,” the U.K. Treasury said in a statement.

This isn’t the first time the U.K. regulatory body has issued warnings about the risks in crypto. Last year, Charles Randell, chair of the Financial Conduct Authority, called for regulators to be given greater powers to protect consumers after an Instagram ad by celebrity Kim Kardashian touted EthereumMax.

Kardashian, boxing legend Floyd Mayweather and NBA Hall of Famer Paul Pierce were among those who were sued in a class-action lawsuit for promoting the digital currency.

The U.K. estimates that 2.3 million people in the country own crypto assets. The Treasury said the tougher rules will be phased in over six months once they’re finalized.

Related: Spain, Singapore Join UK in Crypto Ad Smackdown

On Monday (Jan. 17), Spain’s market regulator enhanced controls on crypto-related ads, saying they must include a warning that investors risk losing all their money.

Spain’s National Securities Market Commission issued a preapproval mandate for any cryptocurrency ad aimed at 100,000 or more people and added mandatory caution language in the vein of cigarette ad health warnings.

Singapore banned crypto-related advertising completely.

On Monday (Jan. 17), the Monetary Authority of Singapore released a new set of “Guidelines On Provision Of Digital Payment Token Services To The Public.”

The MAS warned that ads must avoid portraying crypto trading “in a manner that trivializes the high risks of trading in (digital payment tokens)” or suggests that it is appropriate for the general public. That includes a ban on advertising their “services in public areas in Singapore or through any other media directed at the general public in Singapore.”

The ban applies to exchanges, banks and financial institutions licensed to provide cryptocurrency services. Exchanges and service providers can only promote it on own websites and mobile apps, and their own official social media channels.