The U.K. government has banned cold calls to sell financial products, including cryptocurrencies, in an effort to curb rising cases of fraud and scams. Prime Minister Rishi Sunak announced the ban on Wednesday, noting that fraud accounts for over 40% of crime in the country, costing the government £7 billion ($8.8 billion) annually.
We will ban cold calls on all financial products, so that anyone who receives calls trying to sell them products such as cryptocurrency schemes or insurance will know it’s a scam
Rishi Sunak
The move comes after reports that cryptocurrency fraud in the country increased by 32% to £226 million ($283 million), as of September 2022. The ongoing economic conditions in the U.K. have made it easier for fraudsters to target vulnerable individuals, especially as the country is going through a recession and a high cost of living.
As the crypto sector continues to grow, regulators are becoming increasingly vigilant about how cryptocurrencies and other digital assets are marketed and sold. The Financial Conduct Authority (FCA) and Advertising Standards Authority (ASA) have collaborated to launch a campaign aimed at preventing influencers from recommending unsafe financial products.
In recent incidents, scammers attacked the official Twitter handle of the U.K. national army and continuously retweeted various posts advertising non-fungible token (NFT) scams. Their YouTube channel was also attacked, and four live videos promoting crypto giveaway scams were uploaded.
These incidents highlight the need for increased vigilance in the crypto sector, especially as the use of cryptocurrencies continues to gain popularity. While investors may be attracted to the potential high returns that crypto investments can offer, they must also be aware of the risks involved and take steps to protect themselves.
The ban on cold calls is a significant step in protecting vulnerable individuals from fraudulent activities. However, it is essential to remain vigilant and take measures to protect oneself from potential scams. As the crypto sector continues to evolve, regulators and individuals must work together to ensure that it operates in a safe and secure manner.