Advertising Rules for Virtual Coins: The Only Guarantee in Crypto is the Risk
Advertising for virtual currencies, such as Bitcoin, will be regulated from mid-May. For example, every advertising message will display the warning “Virtual coins, real risks.
The only guarantee in crypto is the risk”. This is reported by the Financial Services and Markets Authority (FSMA).
There are many risks associated with virtual currencies, such as brutal price fluctuations and vulnerability to fraud. There is also no legal framework for this yet. The FSMA has therefore developed rules to regulate advertising for virtual currencies. The rules apply from May 17.
The basic principle of the new rules is that advertising must be correct and not misleading. “For example, advertising may not emphasize the potential benefits without also giving a correct indication of the risks, limitations or conditions,” said the FSMA. Nor should the message contain any statement about the future value or return.
Each advertising message must include a warning phrase and a link or reference to a more comprehensive warning. And “mass campaigns” – campaigns that are distributed to at least 25,000 consumers – must be reported to the authority at least ten days in advance so that it can intervene if necessary before the campaign has even started.
The FSMA also focuses on financial education about virtual currencies. For example, an educational video aimed at young people was launched on Monday, following the start of Money Week. This annual theme week in schools highlights the importance of financial education.
In addition, the authority is working on a game module that should “confront” young people with the risks. This is after the observation that young people buy virtual currencies.