The owner of the cryptocurrency service Luno must change the advertising materials presented to them on the London transport network. They were considered “misleading” by the local regulator.
Last year, Luno put posters on buses, stops and metro stations with the text “If you see bitcoin in the subway, it’s time to buy.” The Advertising Standards Office saw a mismatch, as such ads “give the impression that Bitcoin investments are open and available,” when in reality the tool is “complex, volatile and can expose investors to losses.”
“We believe that consumers will regard the above statement as a call to action and have found that this ad is misleading,” the regulator said.
The company agreed to use different language in the future and accompany its announcements with “appropriate” warnings about the risks and the ability of the price of bitcoin to not only rise, but also fall. In addition, it must notify investors about the unregulated status of cryptocurrencies.
The department said it has responded to several complaints regarding inappropriate risk disclosure in Luno’s announcements. One of the applicants suggested that the firm could take advantage of the lack of consumer experience.
Two weeks ago, the head of the Bank of England warned cryptocurrency investors that they must be prepared to lose all their money.
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