Crypto and NFTs could face UK regulation crackdown in 2022 due to fears young people risk losing money

Crypto and NFTs could face UK regulation crackdown in 2022 due to fears young people risk losing money
FILE PHOTO: Representations of virtual cryptocurrencies are placed on U.S. Dollar banknotes in this illustration taken November 28, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

Ministers are weighing up a regulatory crackdown on digital investment crazes such as cryptocurrencies and non-fungible tokens (NFTs) in 2022 amid growing warnings they could prove dangerous for vulnerable young people.

Football clubs, individual players and online influencers have been promoting crypto products including “fan tokens” and digital artworks. They are lightly regulated in the UK despite the similarites with speculative investments and gambling games, both of which are tightly controlled by the authorities.

No agency is directly responsible for the regulation of crypto assets, with only the Advertising Standards Authority (ASA) taking a proactive stance in stamping out abusive practices in the industry.

Read more