The government has published plans to strengthen the rules on cryptoasset advertisements and protect consumers from misleading claims.

The government said it plans to introduce legislation to address misleading cryptoasset promotions.

Adverts are set to be brought into line with other financial advertising, which the government said will ensure adverts are fair and clear, saying new rules will increase consumer protection while encouraging innovation.

The government cited Financial Conduct Authority (FCA) research which said that though 2.3 million people in the UK are now thought to own some type of cryptoasset, understanding of cryptocurrency is declining.

The consultation response sets out the government’s plan to bring the promotion of cryptoassets within the scope of financial promotions legislation.

The government said this means the promotion of qualifying cryptoassets will be subject to FCA rules in line with the same standards that other financial promotions such as stocks, shares, and insurance products are held to.

“Cryptoassets can provide exciting new opportunities, offering people new ways to transact and invest – but it’s important that consumers are not being sold products with misleading claims,” said chancellor of the exchequer Rishi Sunak. “We are ensuring consumers are protected, while also supporting innovation of the cryptoasset market”.

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