United Kingdom Advertising Standards Authority issued enforcement notices to over 50 crypto organizations


On Tuesday the agency
announced that United Kingdom’s Advertising Standards Authority (ASA) which is
the UK advertising regulator has issued enforcement notices to over 50
organizations in the country that are advertising cryptocurrencies, advising
them to review their ads.
The important
cause for this notice is to teach them to overview their commercials ads and
make certain that it is in compliance with the present new guidance. Additionally,
the instruction
requires the advertisers to certainly state that cryptocurrencies are not
regulated in the UK. Also, it should highlight that due to volatility risks factor value
of investments can be variable which can go down. Further, they can't claim
that investing in crypto is "trivial, simple, easy, or suitable for
anyone" and shouldn't make any sense or reference to the urgency to invest, buy
or create a fear of missing out in crypto.
The advertisements
regulator warned that the organization will actively supervise for compliance and put in force sanctions
in case of violations. Advertising companies promoting cryptocurrency services
have until May 2 to ensure their ads meet this guideline, or they will be
reported to the Financial Conduct Authority (FCA). All companies listed on the
list have been subject to previous ASA rulings. Coinbase (COIN), eToro, Luno, and Crypto.com are some of the companies included in the list.
“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. “Working alongside the FCA, we’ll take strong action against any
advertiser who fails to ensure that their ads are responsible,” CEO of ASA, Guy
Parker said.
After receiving
additional powers by the government to regulate crypto advertising in January,
the FCA announced its plan to tighten oversight of the industry.
In the United
Kingdom, the ASA oversees all digital and physical promotional campaigns. Last
year, it put cryptocurrency commercials on 'red alert', making crypto policing
a priority. Moreover, the organization is actively stopping non-compliant
crypto commercials. It has pulled down campaigns from eToro, Coinfloor, Ziglu,
Coinbase, and even from London soccer club Arsenal.
Crypto
promotions have emerged as a challenge for the regulators, normally due to the
fact of dangers related to the investments and rampant campaigns through
the companies. Earlier, the Indian commercials regulator posted a set of
pointers for online and offline crypto ads.

Indrani Bose
CBW - External Analyst
INDIA