The UK advertising authority has sent an enforcement notice to more than 50 companies that advertise cryptocurrencies. “We will monitor compliance and implement sanctions if we do not see improvements,” the regulator said.
UK advertising regulator’s ‘Red Alert’ priority issue
The UK Advertising Standards Authority (ASA), the country’s advertising regulatory body, announced on Tuesday:
We have issued an enforcement statement to more than 50 companies that advertise cryptocurrencies, instructing them to watch their ads and make sure they understand and follow the rules so that consumers are treated fairly.
“The enforcement notice provides guidance for the crypto industry on how to abide by the rules and warns that we will monitor for compliance and implement sanctions if we do not see improvements,” the ASA added.
“The notice applies to advertisements for cryptocurrencies, crypto exchanges and advertisements or promotions otherwise related to the transfer, sale or delivery of cryptocurrencies, targeted to UK consumers or globally on behalf of UK-based advertisers,” the notice said. watchdog detailed.
The ASA explained that advertisers should clearly state that cryptocurrencies are not regulated in the UK and that the value of crypto investments could fall. In addition, they should not state or imply that crypto investment decisions are “trivial, simple, easy or suitable for everyone”. Ads should also not imply a sense of urgency to buy or create a fear of missing out (FOMO), or imply that investments are low risk.
The advertising watchdog has curbed deceptive cryptocurrency advertising in the country. Earlier this month, the regulator banned ads for floki inu (FLOKI) crypto. The coin is inspired by Tesla CEO Elon Musk’s shiba inu puppy named Floki. Last December, the ASA banned seven crypto ads for Papa John’s Pizza, Coinbase, Kraken, Etoro, Luno, Coinburp and Exmo.
The ASA noted:
This is a priority ‘red warning’ issue for us and we recently banned several crypto ads for misleading consumers and socially irresponsible behavior.
The advertising regulator said it is working with the Financial Conduct Authority (FCA) to take action against those who break the rules.
The ASA added that its compliance team “will conduct follow-up monitoring and if problem ads persist after May 2, we will take targeted enforcement action.”
What do you think of the UK advertising authority’s warning about crypto ads? Let us know in the comments below.
Kevin, an Austrian economics student, found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.
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