According to various verified statistics, in the past 2021, the number of crypto scams has risen. The main reason for this is the increase in the variety of virtual currencies and the activity of non-registered foreign organizations that are inventing more and more sophisticated fraud methods. One of the most effective tools used by scammers to influence the audience is advertising, which significantly boosts the trust rating of potential customers. The governments of the UK and Singapore are taking drastic actions against fake crypto advertising.
FCA Against Fake Crypto Ads
The UK government has criticized the FCA for not taking proper action against misleading crypto ads. The Finance Minister of the United Kingdom, Rishi Sunak, claims that the government is preparing to amend existing laws regarding financial advertising, adding restrictions on cryptocurrencies ads. And although the FCA has repeatedly stated the risks associated with trading cryptocurrencies and dealing with unregulated brokers, they didn’t have enough authority to eliminate fake crypto ads.
With amendments to the laws, the Financial Conduct Authority will finally be able to apply regulatory tools to all sectors of financial advertising. However, it is important to emphasize that the restriction is not a step towards a complete banning on crypto trading. The Finance Minister stated the following: “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.”
Coinbase and Papa Johns Ads Were Banned
At the moment, the country’s authorities have banned seven crypto ads, which are “irresponsibly taking advantage of consumers’ inexperience and for failing to illustrate the risk of the investment.” Campaigns of Etoro, Luno, Exmo, Kraken, Coinburp, Papa John’s Pizza, and Coinbase were among the prohibited ads. However, the case was not limited to the ban: clear requirements for further advertising campaigns were announced for each company to avoid overlapping with unacceptable forms of crypto advertising.
It is important to mention that the Papa John’s ad was launched on Twitter, and the Coinbase ad was distributed via Facebook. The first company offered discounts on orders and gift bitcoins, while the second declared mystical predictions about the incredible growth of the cryptocurrency. Even though Bitcoin did grow by 60% in 2021, other crypts cannot boast of such success and are still unstable, so the authorities consider such false promises as “misleading.”
Singapore MAS Against Fake Crypto Ads
Following the UK, Singapore also introduces restrictions on crypto advertising. The Monetary Authority of Singapore presented its “Guidelines on Provision of Digital Payment Token Services to the Public.” In addition to warnings about the riskiness of crypto trading, MAS has introduced a ban on the distribution of advertising related to virtual money in public places, transport, media, public events, social networks, and literally everywhere except for official websites and applications of investment companies. Authorities of Singapore regard crypto speculation as something not appropriate for a general audience.
Cryptocurrency Scams Are On The Rise in 2022
Most people calmly perceive the actions of the government mentioned above, but many disagree. Obviously, experienced traders have enough knowledge and skills to quickly identify empty promises and avoid crypto scams. However, newbies often find themselves in the middle of an intricately woven web of deceptions. Despite the radical actions of Britain and Singapore, the authorities of most countries remain indifferent to the crypto industry, even despite the growing statistics of fraudulent cases. For this reason, a huge part of the world’s population is still at risk.
However, even if you faced a broker who violated any terms and conditions or you have any withdrawal issues, you can always contact a reliable company like Global Fraud Protection. Experienced lawyers and cybersecurity experts do their best every day to help defrauded depositors get their money back. If you have any negative experience with any fraudulent broker, the Global Fraud Protection team would be grateful if you could share it so they could help you with a chargeback.
