The Advertising Standards Authority (ASA), which imposes ads regulations in the United Kingdom, is continuing its bust against non-compliant cryptocurrency ads and recently slammed Arsenal FC for promoting fan tokens.
Arsenal is one of the many football clubs that partnered with blockchain company Chilliz earlier this year to launch a fan token. In August, the club promoted its fan token on its official Facebook page and on the website featuring three of its players. It ran at least two advertisements.
The UK ad supervisor challenged that both ads were irresponsible and took advantage of ‘consumers’ inexperience or credulity and trivialised investment in crypto assets’.
Furthermore, the ASA called the ads misleading as they failed to explain the risk of crypto investments, and one of them did not make it clear that the fan token is indeed a crypto asset.
Though Arsenal argued that both its ads complied with the advertising regulations in the country, the regulator upheld all the three charges highlighting the lapses.
“The ads must not appear again in the form complained about,” the ASA’s decision stated. “We told Arsenal Football Club PLC to ensure that their future ads did not trivialise investment in crypto assets and did not irresponsibly take advantage of consumers’ lack of experience or credulity by not making clear that CGT could be due on crypto-asset profits.”
Crackdown against Crypto Ads
The ASA made its stance clear against the growing number of cryptocurrency promotions in the country as it put a ‘red alert’ priority on crypto advertising. Moreover, it is actively taking action against both physical and digital promotions of non-compliant crypto ads.
Most recently, the agency slammed eToro and Coinbase for running digital campaigns to promote their crypto-based products and services. Furthermore, the agency warned two local crypto exchanges for posting crypto ads in newspapers and tube stations without proper risk warnings and explanations.
