The UK Advertising Standards Authority (ASA) has banned seven cryptocurrency-related advertising campaigns, finding that they did not adequately reflect the risks of investing. The BBC reports.
The regulator targeted marketing campaigns by Coinbase Europe, eToro, Papa John’s, Luno Money, Exmo Exchange, Payward, and Coinburp.
All seven campaigns were “prohibited for the irresponsible use of consumer inexperience and the failure to illustrate the risks of investing,” the publication quotes the regulator’s statement.
The popular pizza chain Papa John’s offered visitors on its site “free bitcoins worth £10.”
“Save £15 by spending £30 or more, and receive £10 in Bitcoin from Luno!”
The company explained that the promo was part of Bitcoin Pizza Day celebrations, and the “free” cryptocurrency offer differed from a scenario in which a consumer is given the opportunity to invest money in a financial product.
In ASA’s view the advertisement “oversimplified something that was a serious and potentially costly financial decision, especially in the context of an intended audience that was likely to have limited knowledge of cryptocurrency.”
The regulator found Kraken’s bitcoin exchange advertisement on a digital poster by Payward at London Bridge station. Although the advert contained a fairly long disclaimer, the ASA considered it confusing, as consumers would not have time to understand the relevant disclaimer information if they even saw it.
Other crypto trading platforms whose ads the regulator identified as breaches promoted their services on various media platforms:
- eToro — paid advertising in the media;
- Exmo — a video on YouTube;
- Luno Money — in its own app;
- Coinbase Europe — paid advertising on Facebook;
- Coinburp — a post on Twitter.
The bans form part of a broader ASA project, the result of which will be updated rules for cryptocurrency advertising. A regulator’s representative called it a “serious priority.”
“Consumers must know about the risks of investing in crypto assets, and companies must ensure that their advertising does not mislead or be socially irresponsible by exploiting consumers’ lack of knowledge about these complex and volatile products,” he said.
As reported in May 2021, the ASA deemed the Luno advertisement placed on London’s transport network to be misleading.
In November the regulator initiated an investigation into the marketing campaign of the meme cryptocurrency Floki Inu. It also used the London public transport system for it.
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