UK advertising authorities have sent enforcement notices to more than 50 companies promoting cryptocurrencies. “We will monitor compliance and impose sanctions if there is no improvement,” regulators said.
UK Advertising Regulatory “Red Alert” Priority
The UK Advertising Standards Authority (ASA), the UK’s advertising regulator, announced on Tuesday:
We issue enforcement notices to more than 50 companies promoting cryptocurrencies, review ads and ensure that consumers understand and comply with the rules to ensure fair treatment. Is instructing.
“The enforcement notice provides guidance to the crypto industry on how to comply with the rules, monitors compliance and warns against imposing sanctions if no improvement is seen,” ASA added.
“This notice is for cryptocurrencies, exchanges, and advertisements with the transfer, sale, or supply of cryptocurrencies targeted at UK consumers or globally on behalf of UK-based advertisers. Or it applies to promotional ads, “Watchdog explained in detail.
The ASA explained that advertisers must clearly state that cryptocurrencies are not regulated in the UK and that the value of crypto investments may be reduced. Moreover, they should not state or imply that crypto investment decisions are “trivial, simple, easy, and appropriate for everyone.” Also, the advertisement should not indicate the urgency of the purchase, create a FOMO (FOMO), or indicate that the risk of investment is low.
Advertising Watchdog curbs domestic misleading cryptocurrency advertising. Earlier this month, regulators banned advertising for the floki inu (FLOKI) cipher. The coin was inspired by Tesla CEO Elon Musk’s Shiba Inu puppy Floki. Last December, ASA banned seven crypto ads: Papa John’s Pizza, Coinbase, Kraken, Etoro, Luno, Coinburp, and Exmo.
The ASA states:
This is a “red alert” priority for us and has recently banned some crypto ads due to misleading consumers and social irresponsibility.
Advertising regulators have said they will work with the Financial Conduct Authority (FCA) to take action against those who do not follow the rules.
The ASA added that the compliance team will “perform follow-up monitoring and take targeted enforcement measures if problematic ads continue after May 2nd.”
What do you think about the UK advertising authorities warning about crypto advertising? Let us know in the comments section below.
Kevin Helms
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