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- On Wednesday, the UK marketing regulators, following a complaint, banned two crypto advertisements from the trading platform, Crypto.com.
- According to the regulators, the ads seemed to be taking advantage of the consumer’s inexperience and weren’t pointing to the fact that there is risk involved with the crypto investment.
- The watchdog didn’t charge any fine from the trading platform. Crypto.com was let go off with a warning that in the future, there should be an explicit mention of the risks associated with the crypto investment.
This year, the regulators worldwide have continued their crypto regulation. In the last months of last year, The Bank of England pointed out a dire need for a global framework for regulating the crypto market.
On Tuesday, South Korea’s Naver and Kakao withdrew their Singapore license applications following Binance. On the 4th day of New Year, the regulation news didn’t improve as the Kosovar government stopped crypto mining due to winter power constraints.
UK Regulators Bans 2 Ads By Crypto.com
The news of UK’s marketing regulators banning two crypto ads by Crypto.com. The UK’s ASA (Advertising Standards Authority) has responded to a complaint as per the reports.
Crypto.com is a crypto trading platform created to support the trading of all cryptos and their related services, allowing users to spend, earn and borrow against cryptos.
According to the coinmarketcap, Crypto.com is the 16th largest cryptocurrency in the crypto market.
The first ad ban by UK regulators included the text “Buy Bitcoin with credit card instantly.” Daily Mail app on 1 September 2021.
The second ad was seen on 30 July 2021 in the Love Balls app, assuring “up to 3.5% p.a”. The maximum number limit in the text increased to “8.5%.”
The Advertising Standards Authority (ASA) also said that the consumers are likely to misinterpret ‘Earn up to 8.5% p.a.’, believing that any deposit could increase by such a high rate.
Adding, the regulator said, the ads failed to communicate the risks involved with the crypto investment and tried to take advantage of the user’s credulity or inexperience.
The UK regulator also noted that there was also no warning about the danger of landing into debt, along with the suggestion that consumers should buy crypto with a credit card.
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Although the regulator issued no fines, the watchdog did give a warning to the trading platform and strictly said that in the future, ads should include clear details regarding the investments along with the disclaimer that the value of an investment can go up and down as well.
The ruling against the trading platform has made it into the list of other rulings against crypto-related firms from the regulator. It banned seven crypto ads declaring the crypto assets are a ‘red alert’ priority in December. Trading platforms, eToro and Coinburp; exchanges Kraken, EXMO, Luno, and Coinbase; and a promotional ad from Papa John’s, a Pizza Chain, were the companies whose ads were banned by the regulator.
The ruling came during the marketing push by Crypto.com. In November, Crypto.com secured the naming rights to LA Lakers’ Staples Centre in a $700 million deal, it is one of the largest sponsorship deals in sports history and also announced back-to-back deals with a bunch of football clubs.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
