UK Bans Luno's ‘Misleading’ Bitcoin Ad

The United Kingdom’s advertising watchdog has flagged the promotion of cryptocurrency exchange Luno, calling the message on the promotional posters ‘misleading’.

“If you’re seeing Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term on the Underground, it’s time to buy,” a slogan on ad posters displayed in London’s Tube stations and on buses says. It was strategically placed in February with the corrections in the cryptocurrency market.

However, the Advertising Standards Authority (ASA) thinks that the advertisements underplay the risks associated with investments in digital assets like Bitcoin. The posters did not display any risk warnings either.

“We concluded that the ad irresponsibly suggested that engaging in Bitcoin investment through Luno was straightforward and easy, particularly given that the audience it addressed, the general public, were likely to be inexperienced in their understanding of Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term,” ASA’s announcement on Wednesday stated.

Steps were taken in response to three complaints received by the advertising regulator against Luno’s promotion. While all three complaints claimed the ads to be misleading and ‘failed to illustrate the risk of the investment’, one went further to question ‘whether the ad took advantage of consumers’ inexperience or credulity.'

Another Roadblock for Crypto Exchanges?

Though Luno is based in London, a large part of its users are in overseas markets, especially in Asia and Africa. The company revealed in April that only around 200,000 of its 7 million user base are from the UK.

Luno’s campaign was not the first to be flagged as the UK regulatory agency banned an ad by Coinfloor, another crypto exchange, calling that ‘misleading’ and ‘socially irresponsible’.

While crypto investments are not illegal in Britain, the market is unregulated. The local financial markets regulator issued multiple warnings on ‘risky’ crypto investments and banned the sale of retail crypto derivatives.

The ASA asked Luno ‘to ensure that their future marketing communications make sufficiently clear that the value of investments in Bitcoin was variable’. The exchange already responded to the watchdog and said that the ads will not appear in the same form again.