UK Debates Banning Cold Calls for Crypto Amid Rising Fraud Concerns

• The UK government is considering banning cold calls promoting financial products, including crypto, to prevent fraud.
• A public consultation was launched to evaluate the ban’s impact on individuals and businesses.
• The government stresses raising awareness to avoid falling for unsolicited calls marketing crypto and financial products due to increasing fraud.

Amid rising financial fraud, the United Kingdom is exploring a ban on cold calls promoting financial products like cryptocurrencies. A public consultation aims to assess the ban’s impact on businesses and individuals as part of a larger anti-fraud strategy.

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Running from this month until September 27, the 19-question consultation aims to meticulously explore the optimal approach for designing and executing the proposed ban. With a marked increase in fraudulent schemes, the UK government has underlined its concerns, citing instances where unsuspecting individuals were coerced into investing significantly more than intended through cold call tactics.

Andrew Griffith, the British Economic Secretary to Treasury, emphasized,

We want the public to know that any unsolicited call marketing financial products such as a crypto asset or insurance is a scam, and not to fall prey to fraudsters.

The UK government research found over half of British landlines received dubious calls last year. Though exact cold call fraud figures are undisclosed, the total UK fraud-related financial loss is approximately $8.6 billion (£6.8 billion).

The public consultation evaluates the effects of the suggested crypto investment cold call ban on different consumer groups and businesses. Online discussions, mainly on Reddit, mostly support the complete ban.

This development is part of the broader regulatory efforts in the UK to ensure a safer environment for crypto-related transactions. The Financial Conduct Authority (FCA) has been actively pursuing enhanced consumer protection measures and establishing clear guidelines for companies operating in the digital asset space.

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