UK REGULATOR ISSUES CRYPTO ADS NOTICE TO 50 FIRMS

UK REGULATOR ISSUES CRYPTO ADS NOTICE TO 50 FIRMS

The U.K. Advertising Standards Authority (ASA), the country’s regulator of advertising, made public on Tuesday that: “We have issued an enforcement notice to over 50 companies which advertise cryptocurrencies, instructing them to review their ads and to ensure they understand and are complying with the rules so that consumers are treated fairly”.

“The enforcement notice provides guidance to the crypto industry on how to stick to the rules and warns that we will monitor for compliance and implement sanctions if we do not see improvements,” the ASA further stated.

“The notice applies to ads for cryptocurrencies, crypto exchanges and ads or promotions which otherwise involve the transfer, sale or supply of cryptocurrencies, targeted at UK consumers or that are targeted globally on behalf of UK-based advertisers,” the watchdog elaborated.

The ASA described that advertisers must plainly state that cryptocurrencies are uncontrolled in the U.K. and the worth of crypto investments could decline. Additionally, they must not state or imply that crypto investment decisions are “trivial, simple, easy or suitable for anyone.” Ads must also not imply a sense of necessity to buy or create a fear of missing out (FOMO), or imply that investments are low-risk. The advertising watchdog has been cracking down on ambigious cryptocurrency ads in the country. 

Earlier in the month, the regulator prohibited ads for floki inu (FLOKI) crypto. The coin was influenced by Tesla CEO Elon Musk’s shiba inu puppy called Floki. Last year December, the ASA prohibited seven crypto ads for Papa John’s Pizza, Coinbase, Kraken, Etoro, Luno, Coinburp, and Exmo.

The ASA noted: “This is a ‘red alert’ priority issue for us and we’ve recently banned several crypto ads for misleading consumers and for being socially irresponsible”.

The advertising regulator said it is functioning with the Financial Conduct Authority (FCA) to take action against those who do not obey with the rules.

The ASA added that its compliance team “will conduct follow-up monitoring and if problem ads persist after 2 May, we will take targeted enforcement action.”

 

Esther Anochie