The United Kingdom’s Advertising Standards Authority (A.S.A) has prohibited multiple cryptocurrencies from promoting advertisements.
The regulator has claimed that the advertisements being aired in the nation’s mass media space were primarily deceptive.
It has been claimed that the U.K.’s citizens were being taken advantage of, as the ads only showcased scenarios of overnight success in the industry and failed to portray the high risks accompanying investments in the industry.
According to the regulatory body, famous marketers are currently in violation of their stipulated regulation and are presently non-compliant. It has ordered that all crypto advertising activities be halted immediately.
The advertisement flagged by the agency includes ads by Papa John’s Pizza, Coinbase, Kraken, Etoro, Luno, Coinburp, and Exmo.
A.S.A.’s Guidelines And Advertisement Standards
In the era of strict regulation of the crypto industry and its other derivative services, U.K.’s financial regulatory body isn’t the only regulatory body pulling the regulation strings and choking the crypto industry.
The A.S.A. of the U.K. has made available to the general public strict rules and regulations that must be adhered to by advertisement agencies to prevent regulatory action from being levied against them.
According to publications on its web page, the agency has acknowledged the growth of cryptocurrency worldwide. It has also realized its inevitable diffusion in the U.K. It cited examples like Bitcoin, Ethereum, and Dogecoin, a meme coin that made many of its early investors millionaires in dollars. Cryptocurrencies have gone from isolated interests worldwide to being a global force.
Cryptocurrencies have since reared their head in various national and local news in the country, which has facilitated the industry’s exploration by significant investment funds and subsequent acquisition of relative assets.
The popularity and the gradual adaptation of crypto by various companies and businesses have made more and more consumers and investors want in. Given this, the A.S.A. took it upon itself to roll out multiple guidelines that marketers advertising cryptocurrency must follow.
The Committee of Advertising Practise (C.A.P.) code, in conjunction with the A.S.A., mandates that marketers describe items in an understandable way to the target audience.
Furthermore, marketers who want to promote cryptocurrency products and services should read the C.A.P. Code’s section on financial products and strictly stick to them.
In disseminating cryptocurrency prediction or forecasts by advertising, its past performance must not be obscured by marketers, and it should be spelled out to the target audience/public.
Finally, the agency mandated explicit presentation of risks when investors venture into the crypto industry not to take advantage of consumers’ naivety and inexperience.
A.S.A.’s Past Rulings
The A.S.A. has previously ruled that a cryptocurrency exchange (HDR Global Trading) violated the Code by failing to present its adverts in a way that was easily understood by its target audience.
After weeks of investigations, it has declared advertisements by Coinburp, Papa John’s Pizza, Kraken, Coinbase, Etoro, Exmo, and Luno non-compliant and ordered their immediate shutdown.