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News- Crypto ads campaigns again have to witness such cryptocurrency firms
- ASA has taken down another batch of crypto ads campaigns that are promoting several major industry firms
- The watchdog issued several rulings on ad violations that involve six cryptocurrency platforms
- ASA joins as a number of similar rulings that were made earlier this year as the authority has been actively hunting and halting crypto ads
Crypto ads have been a significant concern for the United Kingdom-based financial watchdogs, for the last few months. It has been observed that as the cryptocurrency ecosystem is getting more mainstream, regulators are eyeing to introduce more stringent rules. Simultaneously, UK financial regulators are also concerned about the risk associated with cryptocurrencies. Hence, the Advertising Standards Authority (ASA) asked the cryptocurrency firms to clarify that previous bullish markets do not guarantee the same scenarios in the future.
ASA takes down another batch of a crypto ads campaign
The UK ASA is an independent advertising regulator. Notably, recently the regulator has taken down another batch of crypto ads campaigns promoting several major industry firms. On Wednesday, the UK-based advertising watchdog issued several rulings on ad violations that involve six cryptocurrency platforms. The platforms included Coinbase, Kraken, eToro, Exmo, Coinburp, and Luno. Moreover, the regulator also issued a similar ruling for pizza chain Papa John’s.
According to the rulings, all seven promotions were banned for irresponsibly taking advantage of consumer inexperience. And for failing to illustrate the risks behind investing in such asset classes.
ASA calls cryptocurrency promotions are misleading
The advertising regulator had argued with Coinbase’s European branch specifically to put out a so-called misleading promotion on its Facebook ad in July this year. ASA also highlighted that five pounds in BTC in 2010 would be worth more than 100k pounds in January 2021. However, the watchdog also underscored that the ad implied there would be a similar guaranteed increase in BTC value over the next decade. Moreover, according to ASA, Coinbase Europe was also unable to clarify that past performance was not necessarily a guide for the future.
On the other hand, the regulator’s ruling was against Kraken operator Payward. That is related to a digital poster for Kraken, which was seen in August 2021 at London Bridge station. Notably, ASA argued that the crypto ads lacked a proper risk warning as the disclaimer was shown for just a second, that too at the beginning of a 20-second ad. Hence, ASA considered that the presentation made to consumers was not fully readable or understandable even if it was seen at all.
ASA is actively hunting and ceasing
It is concerning to see how the moves by ASA join a number of similar rulings that were made earlier this year as the authority has been actively hunting and halting crypto ads. Similar to now, the watchdog has also taken down Luno’s campaign. At the time, ASA argued that the ads were shown across the London Underground network and on buses, with a poster including an image of BTC. Notably, the poster was asking the residences to purchase the dip.
