The United Kingdom’s ads regulator, the Advertising Standards Authority (ASA), has cracked down on cryptocurrency ad campaigns of Ziglu, an FCA-regulated online crypto platform.
The exchange ran promotions under which it put digital posters across Edinburgh with the text: “Scotland, your capital is at risk.”
“As with any investment, your capital is at risk. As Ziglu is not a bank, investments are not covered by the Financial Compensation Scheme. Ziglu Limited is authorized by the Financial Conduct Authority under the Electronic Money Regulations 2011,” a sub-text in the ad stated.
A complaint filed against Ziglu’s ad challenged that it caused unjustifiable distress, stating that the capital of all Scottish consumers’ was at risk. In addition, it was alleged to be ‘misleading’ and ‘irresponsible’.
Promoting the Brand, Not Crypto
However, Ziglu said that the ad was part of a short and geographically limited campaign. It was launched in late August 2021 and appeared in 200 outdoor locations in Edinburgh. It came to the regulator’s notice in September 2021.
The crypto company defended itself by saying it was its social responsibility to highlight the risks associated with the product and other mainstream investments. Additionally, it said that the ad did not promote crypto investment, but the Ziglu brand.
Moreover, Ziglu said that the intention of the ad was only to trigger debate by using a prominent risk warning. It was not about cryptocurrency, so there was no obligation to provide information about taxes.
However, the ASA upheld all the three allegations against the ad and ordered Ziglu not to run the ad further. “We told Ziglu Ltd t/a Ziglu to ensure that their future ads did not cause unjustifiable distress. We also told them to ensure they made sufficiently clear that the product advertised was cryptocurrency,” the regulator said.
The British ad regulator is very vigilant against the rampant crypto ad campaigns in the country. Earlier, it flagged campaigns run by eToro, Coinbase and even Arsenal FC, a popular football club.
Meanwhile, the Indian ad regulator recently released detailed guidelines, specifying how crypto platforms should run advertisements in the country, both in online and offline campaigns.
