UK advertising regulator bans crypto ads from Coinbase and Kraken
The Agency for Advertising Standards (ASA), the UK’s independent advertising regulator, cancelled another batch of cryptocurrency-related advertising campaigns that promoted companies in several major industries.
On December 15, the advertising regulator issued multiple rulings on advertising violations involving six crypto-related companies, including Coin Bank, Kraken, Toro, Dear, Crypto broker Coinburp and moon Cryptocurrency exchange. ASA also release A similar ruling against pizza chain Papa John’s.
The ruling stated that all seven types of advertising or promotional activities were banned for “irresponsibly exploiting consumers’ lack of experience and failing to account for investment risks”.
The ASA argued that Coinbase’s European branch launched a “misleading” promotion in its paid Facebook ad in July 2021, which included a text stating “The value of £5 in Bitcoin in 2010 was more than 100,000 in January 2021. GBP”.
According to the advertising regulator, the advertisement “implies a similar guaranteed growth in the value of Bitcoin over the next ten years.” According to the ASA, Coinbase Europe also “does not make it clear that past performance is not necessarily a guide for the future”.
Another ASA ruling is against Kraken operator Payward, related to the Kraken digital poster seen at London Bridge Station in August 2021. The regulator argued that the ad lacked an appropriate risk warning because the risk disclaimer only displayed “one second.”
“The risk warning only runs for one second at the beginning of the 20-second ad. We believe it displays a lot of information to consumers, even if they see it, they cannot fully read or understand it,” the ruling read.
The ASA’s latest regulatory action joins some similar rulings made earlier this year because the agency has been proactive Hunting and closing Misleading encrypted advertising.
May, the ASA canceled another advertising campaign on Luno ExchangeThis year, the ad was shown on the London Underground network and London buses. The poster has a picture of Bitcoin that reads: “If you see Bitcoin on the subway, it’s time to buy it.” Prohibit Coinfloor’s advertising campaigns exchange.