The UK Advertising Standards Authority (ASA) has issued notices to more than 50 crypto companies to ensure that their ads comply with the regulations.
The main purpose of this notice is to make organizations working with cryptocurrencies become more responsible in the preparation of advertisements, said Guy Parker, CEO of the UK Advertising Standards Authority (ASA).
He explained that the popularity of digital assets has skyrocketed in recent years. The regulator is concerned that advertising for cryptocurrencies may encourage people to invest their money in them, which they cannot afford to lose. Because people are not aware of the risks involved, advertisers must make it clear in their ads that digital assets are not regulated in the UK, the ASA said.
In addition, crypto companies should not call investing in crypto assets easy and suitable for everyone. Advertisers should refrain from calling for urgent investments in cryptocurrencies for fear of missing out on possible profits. The ASA has warned that it is closely monitoring the actions of crypto firms, working with the UK Financial Conduct Authority (FCA). The agency will take strong action against any advertiser who fails to act responsibly on this matter.
Sarah Pritchard, executive director of market development at the FCA, said regulators will continue to crack down on misleading advertising for cryptocurrencies. According to her, people should be wary of any advertisement that promises high returns on investment, and before investing, you need to check projects on the official FCA website.
Late last year, the ASA banned advertising for cryptocurrency platforms Coinbase Europe, Kraken, eToro, Luno Money, Exmo Exchange, and Coinburp due to a lack of warnings about the risks of investing in crypto assets. The Indian authorities are also concerned about this issue. In February, the Advertising Standards Board of India presented specific recommendations for promoting cryptocurrencies in the country.
Source: Bits
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