One of the biggest ills and threats facing the crypto industry has been the incessant presence of bad actors that seek to profit fraudulently. When such happens, the unsuspecting investors have always been the losers. With no legal redress to cover them, the investors have for long been incurring huge losses.
However, things seem to be looking for crypto investors, especially those in the UK. In a recent announcement, the UK government has expressed its keenness in taking strong steps to cushion investors from market predators. The HM Treasury is mulling over a plan to regulate crypto promotions.
The plan was fronted by the City Minister, John Glen. John is the head of the financial services sector in the UK. According to the proposal, companies will need to get a permit, dubbed “regulatory gateway,” before they can be allowed to run promotions for crypto products in the United Kingdom.
The decision to introduce the regulatory gateway came after a report tabled by the 2018 Cryptoassets Taskforce revealed that fraudulent crypto promotions were becoming quite a thorny issue for the industry and were affecting many investors.
FCA To Oversee Promotions
The UK Financial Conduct Authority (FCA) has given the mandate to oversee all crypto-related promotions and ensure that unsuspecting investors don’t lose their funds to crooks in the crypto industry. According to John Glen, the current regulatory system has failed to work properly especially due to the influx of variable crypto products in the market. In that case, a new approach had to be developed and deployed.
Granted, this is good news for investors who have been wary of scams plaguing the crypto market, and if all goes well, the industry could see an influx of new money that could in turn contribute to the exponential growth of the entire industry.