The UK Government Proposes Ban on Unsolicited Cold Calls for Cryptocurrencies
The UK government has put forth a proposal to ban unsolicited cold calls for all consumer financial products and services, including cryptocurrencies, in an effort to protect consumers from investment fraud. Reports of investment fraud in the UK have seen a significant rise, with losses amounting to £750 million in 2022-23. The use of cold calling by fraudsters offers them the opportunity to manipulate potential victims and exploit the high-pressure situations they create.
Key Points:
1. Proposal for Ban: The ban on cold calls would cover unsolicited phone calls, marketing investments, and other financial products for individual consumers, including cryptocurrencies.
2. Patchwork Approach: The Treasury recognizes that the current restrictions on cold calling for financial products like pensions have caused confusion and loopholes for scammers.
3. Exemption for Business-to-Business Calls: Companies would still be allowed to market to other businesses through cold calling, as the government views the risk to be lower in such cases.
4. Extending the Ban: The consultation seeks feedback on the possibility of extending the ban to other communication channels, such as social media video calls.
5. Public Consultation: The proposal is currently open for public consultation until 27th September 2023, and if enacted, the Information Commissioner’s Office would enforce the ban.
Hot Take:
While some argue that overly broad regulation could hinder innovation in the crypto industry, the proposal to ban unsolicited cold calls for cryptocurrencies is a welcome step to crack down on investment fraud. By providing stronger protection for consumers against scams, the UK government is actively working towards safeguarding the interests of crypto investors.
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