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News

UK To Ban Cold Calls Related To Crypto Investment

August 24, 2023 - Around 2 mins mins to read

Key Points:

  • The UK Treasury mulls a ban on financial telemarketing to curb £7 billion in fraud.
  • Seeking a balance between anti-fraud and business impact, the government plans 400 new intelligence jobs.
  • The Bank of England and FCA united for a stable financial landscape and a positive response to the stablecoin effort.
In anticipation of a comprehensive ban on telemarketing related to financial services and products, the UK Treasury has taken a proactive step by releasing a consultation document.
UK To Ban Cold Calls Related To Crypto Investment

The move aims to assess the potential grassroots implications of the ban, offering stakeholders an opportunity to provide evidence and insights.

The ban, set to target cold calls promoting financial products including insurance and cryptocurrencies, is part of the UK‘s broader strategy to combat fraud, which costs the nation an estimated £7 billion annually.

To strengthen its approach, the government committed in May to adding 400 new jobs to enhance intelligence-led policing and combat fraudulent activities, according to Bloomberg.

The consultation document issued by the Treasury outlines 19 key questions for stakeholders to address.

These questions are designed to gauge the ban’s potential impact on scammers while minimizing disruptions for legitimate businesses that rely on cold calling as a marketing strategy. The consultation period is set to conclude on September 27, 2023.

One specific concern highlighted by the Treasury is the susceptibility of investors to losses resulting from cold calls.

Sometimes, investors have fallen victim to scams involving financial products like cryptocurrencies. Despite previous regulatory efforts to curb cold calling, scammers often exploit legal loopholes to evade restrictions.

In conjunction with the ban, the Treasury will collaborate with telecoms regulator Ofcom to counter phone number spoofing, which fraudsters use to impersonate genuine UK phone numbers. This technological initiative aims to strengthen the enforcement of the ban further.

Additionally, recent Bank of England (BoE) developments indicate progress in establishing a systemic stablecoin framework.

The BoE’s collaboration with the Financial Conduct Authority (FCA) to supervise these stablecoins has garnered positive feedback from stakeholders, signaling a concerted effort to ensure the stability of the financial landscape.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

BoE

Cold Calls

crypto

FCA

Ofcom

UK

UK Treasury

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

UK To Ban Cold Calls Related To Crypto Investment

Key Points:

  • The UK Treasury mulls a ban on financial telemarketing to curb £7 billion in fraud.
  • Seeking a balance between anti-fraud and business impact, the government plans 400 new intelligence jobs.
  • The Bank of England and FCA united for a stable financial landscape and a positive response to the stablecoin effort.
In anticipation of a comprehensive ban on telemarketing related to financial services and products, the UK Treasury has taken a proactive step by releasing a consultation document.
UK To Ban Cold Calls Related To Crypto Investment

The move aims to assess the potential grassroots implications of the ban, offering stakeholders an opportunity to provide evidence and insights.

The ban, set to target cold calls promoting financial products including insurance and cryptocurrencies, is part of the UK‘s broader strategy to combat fraud, which costs the nation an estimated £7 billion annually.

To strengthen its approach, the government committed in May to adding 400 new jobs to enhance intelligence-led policing and combat fraudulent activities, according to Bloomberg.

The consultation document issued by the Treasury outlines 19 key questions for stakeholders to address.

These questions are designed to gauge the ban’s potential impact on scammers while minimizing disruptions for legitimate businesses that rely on cold calling as a marketing strategy. The consultation period is set to conclude on September 27, 2023.

One specific concern highlighted by the Treasury is the susceptibility of investors to losses resulting from cold calls.

Sometimes, investors have fallen victim to scams involving financial products like cryptocurrencies. Despite previous regulatory efforts to curb cold calling, scammers often exploit legal loopholes to evade restrictions.

In conjunction with the ban, the Treasury will collaborate with telecoms regulator Ofcom to counter phone number spoofing, which fraudsters use to impersonate genuine UK phone numbers. This technological initiative aims to strengthen the enforcement of the ban further.

Additionally, recent Bank of England (BoE) developments indicate progress in establishing a systemic stablecoin framework.

The BoE’s collaboration with the Financial Conduct Authority (FCA) to supervise these stablecoins has garnered positive feedback from stakeholders, signaling a concerted effort to ensure the stability of the financial landscape.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.