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.<\/p>\n
The regulator targeted marketing campaigns by Coinbase Europe, eToro, Papa John\u2019s, Luno Money, Exmo Exchange, Payward, and Coinburp.<\/p>\n
All seven campaigns were \u201cprohibited for the irresponsible use of consumer inexperience and the failure to illustrate the risks of investing,\u201d the publication quotes the regulator\u2019s statement.<\/p>\n
The popular pizza chain Papa John\u2019s offered visitors on its site \u201cfree bitcoins worth \u00a310.\u201d<\/p>\n
\n\u201cSave \u00a315 by spending \u00a330 or more, and receive \u00a310 in Bitcoin from Luno!\u201d<\/p>\n<\/blockquote>\n
The company explained that the promo was part of Bitcoin Pizza Day celebrations, and the \u201cfree\u201d cryptocurrency offer differed from a scenario in which a consumer is given the opportunity to invest money in a financial product.<\/p>\n
In ASA\u2019s view the advertisement \u201coversimplified 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.\u201d<\/p>\n
The regulator found Kraken\u2019s 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.<\/p>\n
Other crypto trading platforms whose ads the regulator identified as breaches promoted their services on various media platforms:<\/p>\n
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- eToro \u2014 paid advertising in the media;<\/li>\n
- Exmo \u2014 a video on YouTube;<\/li>\n
- Luno Money \u2014 in its own app;<\/li>\n
- Coinbase Europe \u2014 paid advertising on Facebook;<\/li>\n
- Coinburp \u2014 a post on Twitter.<\/li>\n<\/ul>\n
The bans form part of a broader ASA project<\/a>, the result of which will be updated rules for cryptocurrency advertising. A regulator\u2019s representative called it a \u201cserious priority.\u201d<\/p>\n
\n\u201cConsumers 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\u2019 lack of knowledge about these complex and volatile products,\u201d he said.<\/p>\n<\/blockquote>\n
As reported in May 2021, the ASA deemed<\/a> the Luno advertisement placed on London\u2019s transport network to be misleading.<\/p>\n
In November the regulator initiated an investigation<\/a> into the marketing campaign of the meme cryptocurrency Floki Inu. It also used the London public transport system<\/a> for it.<\/p>\n