UK Advertising Regulator Issues Notice on Misleading Crypto Ads

Daniel Attoe
Daniel Attoe

Updated · Mar 23, 2022

SHARE:

Techjury is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more.

The watchdog has set a May 2nd deadline for companies to comply with its new guidelines.

Enforcement Notice

The Advertising Standards Authority (ASA) has issued an enforcement notice to over fifty companies regarding cryptocurrency ads. 

With the notice, the regulator is tasking the firms to review their methods and cut out “problem ads”. The move underlines a regulatory mandate to crack down on misleading promotions. Its scope covers ads for tokens, crypto exchanges, and other related promotions. It comes with a “red alert” priority.

Digital assets, including cryptocurrency and NFTs, are becoming increasingly mainstream, with adoption rates rising both for individual and corporate investors. So far, there has been very little regulation in the UK.

The notice comes with several guidelines that the watchdog expects each crypto company to strictly comply with. For one, affected companies must clearly state that cryptocurrency is unregulated in the UK. Also, any ads must show that the “value of investments are variable and can go down.” Furthermore, they should not elicit fear of missing out on potential investors.

"We're concerned that people might be enticed by ads into investing money they can't afford to lose, without understanding the risks," said ASA Chief Executive Guy Parker in a statement.

The enforcement notice issued on Tuesday went to about 50 companies, including exchange top dogs Coinbase and Crypto.com. Some of the companies have previously run afoul of ASA rules. 

All companies that advertise cryptocurrency services have until May 2 to comply with the watchdog’s guidelines. Subsequently, any non-compliant firms would have to answer to the Financial Conduct Authority (FCA).

SHARE:

Daniel Attoe

Daniel Attoe

Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.

Leave your comment

Your email address will not be published.