“We have sent an enforcement notice to more than 50 companies that advertise cryptocurrencies. It instructs them to look over their ads and ensure that they comply with the rules.”
The ASA stated that the enforcement notice gives guidance to the crypto-industry on how to adhere to the rules. It also warns that sanctions will be implemented if there are no improvements.
The watchdog stated that the notice applies to advertisements for cryptocurrency, crypto exchanges, and promotions which otherwise involve the sale, transfer, or supply of cryptocurrencies. These ads are targeted at UK consumers, or globally for UK-based advertisers.
According to the ASA, advertisers should clearly state that cryptocurrencies in the U.K. are not regulated and that crypto investments may decline in value. Advertisers cannot state or imply crypto investment decisions as “trivial,” simple, easy, or suitable for everyone.
Advertising watchdog in China has been cracking down on misleading advertisements for cryptocurrency. The regulator had earlier this month banned advertisements for flokiinu crypto. Tesla CEO Elon Musk’s shiba-inu dog, Floki, inspired the coin. The ASA banned seven cryptocurrency ads from Papa John’s Pizza and Coinbase.
This is a priority issue and we have recently banned many crypto ads that mislead consumers or are socially irresponsible.
Advertising regulator stated it was working with Financial Conduct Authority (FCA), to take action against people who don’t follow the rules.
The ASA stated that its compliance team would conduct “follow-up monitoring” and that if problems persist after May 2, they will take targeted enforcement actions.
