The UK Advertising Standards Authority (ASA) has banned crypto advertising on two popular social media platforms. The ban was an explicit response to a number of complaints made by members of the public that cryptocurrency ads were promoting “speculative investments” and making misleading claims about price increases.
The “ada crypto” is a cryptocurrency that has been banned by the UK advertising watchdog. The adverts for Coinbase and Kraken have been banned because they were considered to be misleading.
The Advertising Standards Authority, or ASA, the UK’s independent advertising authority, has pulled down a new batch of cryptocurrency-related ad ads promoting a number of key sector businesses.
The advertising watchdog issued various decisions on ad breaches involving six crypto-related companies on Dec. 15, including Coinbase, Kraken, eToro, Exmo, crypto broker Coinburp, and Luno crypto exchange. Papa John’s Pizza received a similar judgement from the ASA.
According to the decisions, all seven advertisements or promotions were prohibited for “irresponsibly taking advantage of customers’ inexperience and neglecting to convey the danger of the investment.”
The ASA said that Coinbase’s European office expressly advertised a “misleading” deal in a sponsored Facebook ad in July 2021, with text that stated “five pounds in Bitcoin in 2010 would be worth almost 100,000 pounds in January 2021.”
The ad “implied there would be a comparable assured gain in Bitcoin value over the following decade,” according to the advertising authority. The ASA also stated that Coinbase Europe “did not make clear that previous success was not necessarily a reference for the future.”
Another ASA decision was against Kraken operator Payward, which was connected to a digital Kraken banner displayed at London Bridge station in August 2021. The watchdog said that the advertisement lacked an appropriate danger warning since the risk disclaimer was only visible for “one second.”
“We believed the risk warning provided the consumer with a vast volume of information that would not be properly read or comprehended even if it was viewed at all,” the judgement states.
Cryptocurrency is ‘not an investment,’ according to UK MPs.
The ASA’s new regulatory actions follow a series of similar judgements earlier this year, as the body has been aggressively tracking down and shutting down deceptive cryptocurrency advertisements.
The ASA shut down another Luno exchange marketing campaign in May. This year, posters featuring a picture of Bitcoin were shown on the London Underground and on London buses, with the message: “If you see bitcoin on the Underground, it’s time to buy.” An commercial campaign by Coinfloor exchange was previously forbidden by the regulator.
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The “bitcoin regulation” is a recent decision from the UK advertising watchdog that bans crypto ads for Coinbase and Kraken.
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