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UK Might Ban Crypto Investment Cold Calls

Thu, 08/24/2023 - 13:22
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Godfrey Benjamin
UK might outlaw crypto investment cold calls, as they expose consumers to scams
UK Might Ban Crypto Investment Cold Calls
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The United Kingdom (U.K.) is doubling down on scams in the broader financial ecosystem as it is mulling over placing a ban on cold calls that may trickle down to the crypto ecosystem as well. As contained in a consultation paper in which the HM Treasury called for evidence and opinions per its proposed action plans, the regulator said it aims to gauge the potential impact and financial constraints that introducing the ban may herald.

British Banking Giant Barclays Bans Payments to Binance, Citing FCA Notice

The U.K., under Prime Minister Rishi Sunak, has been doing all it can to tighten its belt in what can be considered a revolutionarily positive regulatory sweep. The country has been taking a lot of proactive steps toward addressing crime in the nascent crypto ecosystem. Among its efforts include plans to add 400 jobs to bolster its intelligence-led policing of financial crimes.

The proposed ban on cold calls comes after a series of reports of monetary losses attributed to such schemes by scammers. HM Treasury highlighted a few cases in which cold calls were used to deceive customers, as fraudsters actively found a way to bypass whatever prohibitions existed to the framework on these marketing strategies.

With the call for the ban of cold calls, the government is hoping that any form of cover by scammers can be effectively removed.

Bolstering global crypto regulation

Most of the developed countries in the world today are exploring avenues to strengthen their financial landscape by providing a sound regulatory framework for all aspects of the nascent crypto ecosystem.

UK's FCA Extends Temporary Registration Regime for Crypto Businesses

Besides the considered ban on cold calls, British lawmakers have banned some forms of public advertisements that can potentially misinform investors and, hence, lead to a loss of funds. Other countries regulators have been shaping the frameworks guiding the industry in a way that can help bolster innovation, while also keeping average investors safe from being exploited.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.