Simon Cohen, senior associate at ONTIER LLP, was quoted in the Law Gazette following a recent change to the HM Treasury's legislation on the promotion of digital assets.
HM Treasury has announced that those who wish to promote digital assets and investments, such as businesses and influencers, will have to act in accordance with the Financial Conduct Authority's legislation and make sure that financial promotions are 'fair, clear and not misleading.' This applies to stocks, shares and insurance products. Failure to comply will result in immediate disciplinary action from the Advertising Standards Authority.
This comes as the Treasury has determined that the understanding of the technology is declining, 'suggesting that some users may not fully understand what they are buying', especially considering over 2 million people now possess digital assets.
Simon Cohen of ONTIER LLP said:
"The Treasury’s announcement is a clear and welcome indication that the Wild West days of digital assets are coming to an end. But the devil is always in the detail, so we look forward to reviewing the government’s draft bill once published."
For all questions regarding the topics raised in this press release, please contact a member of our team of digital asset legal experts.