The United Kingdom’s Advertising Standards Authority (ASA) has issued enforcement notices to more than 50 companies in the country that are promoting cryptocurrencies, the agency announced on Tuesday.
The primary purpose of the notice is to instruct them to review their advertisements and ensure their compliance with the existing rules.
“Crypto has exploded in popularity in recent years,” said the CEO of ASA, Guy Parker. “We’re concerned that people might be enticed by ads into investing money they can’t afford to lose, without understanding the risks.”
Additionally, the guidance requires the advertisers to clearly state that cryptocurrencies are unregulated in the UK and their volatility risks.
Further, they must not state that investment decisions are “trivial, simple, easy or suitable for anyone” and there should be no implication of urgency to make crypto investments.
The ads regulator warned that the agency will actively monitor for compliance and implement sanctions in case of violations.
“Working alongside the FCA, we’ll take strong action against any advertiser who fails to ensure that their ads are responsible,” Parker said.
Crypto Is on Red Alert
The ASA oversees the digital and physical promotional campaigns in the United Kingdom. Last year, it put cryptocurrency ads on 'red alert', making crypto policing a priority. Moreover, the agency is actively cracking down on non-compliant crypto ads and pulled down the campaigns of companies like eToro, Coinfloor, Ziglu, Coinbase and even London football club Arsenal.
“We will continue to work closely with the ASA to tackle unclear or misleading crypto advertising,” said Sarah Pritchard, the Executive Director of Markets at the FCA.
“People should be wary of any promotion promising high investment returns and do further research before investing, including through the FCA’s InvestSmart website. Crypto assets remain unregulated and those who invest in them should be prepared to lose all their money.”
Crypto promotions have become a matter of concern for the regulators, mainly because of the risks associated with the investments and rampant campaigns by the companies. Earlier, the Indian ads regulator published a set of guidelines for online and offline crypto ads.
