The UK’s advertising watchdog banned seven cryptocurrency ads from running on television or online as they failed to highlight the risks of trading
Solution: The seven crypto ads were for a number of different cryptocurrencies, and all but one made no mention about the risks involved.
The “future of cryptocurrency 2021” is a topic that has been in the news lately. The UK watchdog has banned seven ads from promoting crypto-related products without highlighting potential risks.
The UK’s advertising authority has banned seven cryptocurrency adverts from top crypto businesses owing to their failure to “illustrate the danger of the investment,” in an effort to encourage ethical crypto trading in the nation.
Companies including Etoro, Exmo, Coinburp, and Luno had to deal with the ASA’s wrath for:
“Irresponsibly preying on customers’ inexperience” and neglecting to communicate the hazards connected with bitcoin trading.
The ASA’s assault on cryptocurrency firms
This isn’t the first time the ASA has issued an explicit ban on crypto commercials that fail to explain the dangers associated with crypto investments. Floki Inu commercials have already been prohibited by the UK authorities, citing “irresponsible marketing.”
The seven crypto advertisements that were prohibited were primarily created by cryptocurrency firms themselves in order to recruit more users. Coinburp, Luno, Exmo, and Etoro were all affected in this way. However, the ASA also barred ad companies Europe and Payward from running campaigns for American crypto exchanges Coinbase and Kraken.
Outside Kraken’s instance, a complaint was lodged when the exchange placed a digital poster in a London subway station. ASA quickly concluded that “consumers would not have had the opportunity to grasp the necessary information in the disclaimer, if viewed at all, and that it, thus, was not clear,” despite the fact that the exchange had issued a disclaimer with the advertising.
Another example involving Papa John’s pizza earned ASA’s wrath for pushing “free Bitcoin” on pizza orders. The offer was deemed “trivializing” by ASA, who decided that it may lose investors money.
The UK watchdog considers crypto advertisements to be a high-priority problem.
The Advertising Standards Authority also claimed that monitoring cryptocurrency marketing is a “red alert priority problem” for them in order to safeguard investors from investment frauds.
“Consumers need to know about the risks of investing in crypto-assets,” says ASA director of complaints and investigation Miles Lockwood. “Companies should make sure that their ads aren’t misleading or socially irresponsible by taking advantage of consumers’ lack of awareness around these complex and volatile products.”
In light of recent instances involving deceptive crypto marketing and promotional packages, the ASA intends to change its guidance policy next year to ensure stringent oversight. ASA also said that it would continue to monitor and assess crypto commercials, as well as investigate promotions using fan tokens and NFTs.
Posted in: United Kingdom, Regulation
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