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Crypto and NFTs in UK might witness regulatory pressure in 2022: Report
As per a recent report, cryptocurrencies and NFTs might get a lot of heat from regulatory authorities in the United Kingdom. MPs and campaigners are pressuring the authorities to unleash their regulatory powers on the crypto and NFT industry because they might be negatively affecting the youth.
Crypto ads under the magnifying glass
A report from iNews confirms that the regulatory authorities in the UK are not very pro-crypto and might be aiming to regulate the industry in an efficient manner in 2022. The reason behind this new development is the effect that cryptocurrencies and NFTs are having on the youth."No agency is directly responsible for the regulation of crypto assets, with only the Advertising Standards Authority (ASA) taking a proactive stance in stamping out abusive practices in the industry," said the report hinting at the investigation of the Floki Inu (FLOKI) ads that appeared in the country.
Furthermore, the advertisements of the Arsenal Football Club fan tokens were also censored by the ASA in the month of December.
"Crypto assets have exploded in popularity in recent years, but there's a real danger that people may be drawn in to invest life savings that they later lose based on poor understanding," said ASA.
Gambling?
As per the report from iNews, the "fan tokens" and NFT-based games like Sorare are all under scrutiny because of their being similar to gambling. The report says that current NFTs and blockchain-based NFT games are not regulated heavily in the nation but, MPs are pushing the government to do so.Currently, the Financial Conduct Authority (FCA) is only empowered to regulate cryptocurrencies in cases of money laundering and terror financing cases.
"Given the lack of regulatory protections and the highly speculative nature of the crypto investment, we have consistently warned that people should be prepared to lose all their money," the FCA said.
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