Budget 2020: Cryptocurrencies to come under financial promotion rules

Cryptocurrencies are to be placed under financial promotion rules in a bid to strengthen customer protection, the Treasury has announced.

In its official Budget document, the Treasury announced it intends to consult on this measure and bringing new cryptoassets into the scope of financial promotions regulation.

The Treasury added: “The government also intends to consult later in 2020 on the broader regulatory approach to cryptoassets, including new challenges from so-called ‘stablecoins’.”

AJ Bell personal finance analyst Laura Suter said: “The industry has already been pinpointed as one rife with scammers and rip-off merchants and anything more that can help to limit the exposure of these products to inexperienced investors should be welcomed.”