UK Cryptocurrency Regulation Coming In 2022? | Altcoins, NFTs And Fan Tokens Face Government Scrutiny

1 min read

Crypto Sector Might Face Regulation Wind in the United Kingdom Soon!
  • Premier League club Arsenal was recently called out by the ASA.
  • The government has been hesitant to regulate crypto.

After mounting concerns that digital asset investment trends like cryptocurrency and non-fungible tokens (NFTs) may hurt vulnerable young people, the crypto sector might be subject to a regulatory crackdown by the UK in 2022.

Football teams, players, and social media influencers have promoted “fan tokens” and digital artworks. While they have many similarities with speculative investments and gambling games, which are both strictly regulated in the UK, they are not heavily regulated. The Advertising Standards Authority (ASA) is currently the only government organization that is specifically tasked with policing the crypto asset market for unethical behavior.

The government so far has been reluctant to do anything about cryptocurrency, which is why Members of Parliament and activists are demanding that digital assets be included in an approaching comprehensive gambling review and give the Financial Conduct Authority (FCA) greater authority.

Conservative MP Richard Holden stated:

“It is the Wild West, this grey area between highly leveraged financial investments on the one hand and these products which could quite easily and sensibly be considered to be gambling. There needs to be a clear differentiation there in order to protect people.”

Altcoins, NFTs and Fan Tokens Included

Many smaller altcoins exist in addition to the well-known cryptocurrencies like Bitcoin and Ether. These are often purchased by investors who believe they will appreciate in value over time. Individual ownership of digital photos may be proven using the same blockchain technology as money. Football fans who put their money into NFTs pushed by players like Wayne Rooney and John Terry run the risk of losing it.

Arsenal was recently called out by the ASA for their fan token ads. While fan tokens are touted as an investment in the club, they provide little tangible advantages and some have lost value over time.

Disclaimer: The information provided on this page does not constitute investment advice, financial advice, trading advice, or any other sort of advice and it should not be treated as such. This content is the opinion of a third party and this site does not recommend that any specific cryptocurrency should be bought, sold, or held, or that any crypto investment should be made. The Crypto market is high-risk, with high-risk and unproven projects. Readers should do their own research and consult a professional financial advisor before making any investment decisions.

Via this site

Have A Story? Get Featured On Chiliznews Plus 100+ More Exclusive Crypto News Sites