In the world where govt should be making their own blockchain and CBDC, some of the govt are spending time at the regulation and the rules. Which is understandable considering people break rules first and ask questions later.
UK has a body called Financial Conduct Authority also known as the FCA. The body decides the rules and regulations on the financial front. And they are making sure to set the rules even for the crypto before it can become asset they can approve as a legal asset.
So now that they are getting a lot of press issues and the issues related to money laundering, they are making sure to ask people for the consultation on what to ban and what to let go for crypto regulation.
Let's take a look at some of the FCAs norms for the crypto regulation.
FCA regulatng Finance Influencers
Tiktok and the social media is loaded with the finance advice. And most of them are not even rich or have any form of the finance certification. And yet they are spreading the content as if they are the authority on it. So the FCA wants to control this and want to ban the influencers who doesn't have the authority. This goes to show that they are caring for their new generation of content consumers.
FCA has seen the memes, reels and also the ads that are being shown to the new consumers and the old. And they want to validate those ads and the ad posters before the ads reach the consumers. Which is good thing considering the social media companies need to validate such content otherwise it'd violate the rules.
You can read about it here.
Crypto Ads Regulation on Social Media
Have you ever seen the publish0x ads? They have the adzilla hosting the ads. And those ads are so fake and annoying. This makes you wonder what those ads can do for the consumers if they happen to believe in them. There are claims of 200x profit for every investment and some of those are instant too. A lot of them are fake and easy to spot as well.
Most of the crypto ads like that needs regulation. And FCA has spotted them. They want the ad serving companies to be playing the role too. In near future AI would be making sure such content does not appear in the feed. So the UK's intention to moderate the ads on social media would have global impact and it would put the ad industry on line.
Does Ad industry needs regulation?
Crypto is just one of the component in the ad world. Like they have this as a mere income stream. And they always have other niche and the ocmpanies who pay them very high sum for the ads. And they would just move their content and the direction elsewhere. So they are known to go through regulation that we see and observe on everyday basis even in finance world where ads need regulation.
If finance world needs regulation then so does the crypto. There needs to be validation for the claims. And also we have to learn to let go of the variety of the regulations that could hurt the incoming cash flow for the social media but the right content gets shown to the world. Everything should have some sort of the monitoring and also it needs strong regulation.
FCA is going in the right direction for regulating the ads on tiktok, claims on social media and also variety of the wrong things done in the name of financial influencer and crypto promotion.