The FTC of the United States is looking into many crypto for what may be deceptive or fraudulent advertising. The FTC is investigating “several firms for suspected wrongdoing with digital assets,” according to FTC spokesman Juliana Gruenwald.
Gruenwald withheld information about the businesses that were the subject of the investigation and what sparked it. However, this year in the United States, there has been a lot of discussion about misleading advertising and false promotion.
Crypto Advertising Is On The Rise
Companies that deal in cryptocurrencies spent millions on advertising in 2021 and 2022. Additionally, Crypto.com kept up its promotion of the FIFA World Cup despite the dismal market conditions.
In October, the United States Securities and Exchange Commission (SEC) fined reality TV star Kim Kardashian for “touting on social media” the cryptocurrency token EthereumMax (EMAX) while hiding the $250,000 fee she received for doing so.
As per reports, the Texas financial regulator in November began looking into several celebrities for their support of the now-defunct cryptocurrency exchange FTX. These individuals included NBA point guard Stephen Curry and NFL quarterback Tom Brady.
To protect the general public from unethical business activities, the FTC, a stand-alone department of the American government, was founded.
They published a study on June 6 that indicated that fraudsters had stolen cryptocurrencies worth $1 billion over the year. In 2021, social networking websites were the origin of almost half of all cryptocurrency scams.
The SEC Is Also looking At Cryptocurrency Advertising
Additionally, several financial watchdogs and regulatory agencies have been actively working to stop deceptive bitcoin advertisements.
In March, the UK’s Advertising Standards Authority (ASA) issued an enforcement notice to over 50 businesses that promote cryptocurrencies, advising them to review their advertisements to ensure compliance with the rules.
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In addition to the FTC, the (SEC) of the United States is actively battling cryptocurrencies. The fall of FTX has given regulators many more instruments to combat the digital asset market.
Many believe 2023 will be the year of regulations as nations rush to implement their frameworks. The Financial Times stated that UK officials are finalizing measures to regulate the industry. However, the US will likely want more time.