Updated · May 20, 2022
UK Advertising Regulator Issues Notice on Misleading Crypto Ads
Updated · Mar 23, 2022
The watchdog has set a May 2nd deadline for companies to comply with its new guidelines.
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.
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).
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.
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