The U.K.’s advertising authority has sent an enforcement notice to more than 50 companies that advertise cryptocurrencies. “We will monitor for compliance and implement sanctions if we do not see improvements,” said the regulator.
British Advertising Regulator’s ‘Red Alert’ Priority Issue
The U.K. Advertising Standards Authority (ASA), the country’s regulator of advertising, announced Tuesday:
More than 50 companies that advertise cryptocurrency have received an enforcement notice. They were instructed to look over their advertising and make sure they are following the rules to protect consumers.
“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 added.
“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 detailed.
The ASA stated that cryptocurrency investments are currently unregulated in Britain and could decline. In addition, 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 urgency to buy or create a fear of missing out (FOMO), or imply that investments are low-risk.
The country’s advertising regulator has begun to crack down on fraudulent cryptocurrency advertisements. The FLOKI crypto (Floki Inu) was banned by the regulator earlier in this month. The coin was inspired by Tesla CEO Elon Musk’s shiba inu puppy called Floki. In December last year, the ASA banned seven crypto ads for Papa John’s Pizza, Coinbase, Kraken, Etoro, Luno, Coinburp, and Exmo.
The ASA stated:
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.
Advertising regulator stated it was working closely with Financial Conduct Authority (FCA), in order to pursue those who don’t comply with these 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.”
How do you feel about British Advertising Authority’s warning against crypto ads? Comment below to let us know your thoughts.
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