The UK government has announced a crackdown on cryptocurrency-related adverts that could be considered misleading.

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On Tuesday, the Exchequer said that legislation is due to be proposed to force cryptocurrency and crypto services, in general, to adhere to existing financial advertising laws. 

Cryptocurrencies and crypto assets continue to increase in popularity. The UK government & HMRC have worked to create and enforce taxation rules -with UK holders now expected to pay capital gains tax on their trades -but outside of the legal arena, the general public is still exposed to adverts that may lure individuals into investing into products without fully understanding them. 

According to the treasury, while approximately 2.3 million UK residents are thought to hold some form of crypto asset, "some users may not fully understand what they are buying."

Adverts that promise speculative, lucrative gains, Initial Coin Offerings (ICOs), token sales, and marketing that is considered unfair or misleading may all come under the new legislation, which will mirror what the Financial Conduct Authority (FCA) already imposes for financial products. 

The promotion of cryptocurrency and other crypto assets will need to meet the same standards as stocks, shares, insurance, and other financial services. 

Research conducted by the FCA in 2021 estimates that the average amount held by UK investors is