The UK Advertising Standards Authority has banned ads for Coinbase Europe, Kraken, eToro, Luno Money, Exmo Exchange and Coinburp due to a lack of cryptocurrency risk warnings.
According to
publications The BBC, the UK Advertising Standards Authority (ASA), said that overseeing cryptocurrency activities has become a priority for the agency. The fact is that many advertisements do not communicate the risks of investing in cryptocurrencies. Advertising of the listed six cryptocurrency firms violated the established rules by “irresponsibly exploiting the inexperience of consumers.”
The agency also cited an example of a promotion launched by the popular pizza chain Papa John’s. She offered “£ 10 worth of free bitcoin.” The ad said that by spending over £ 30, shoppers could save £ 15 and receive £ 10 worth of BTC from Luno cryptocurrency exchange. This is how Papa John’s promoted Bitcoin, referring to “Bitcoin Pizza Day” (May 22, 2010), when BTC was first used to buy real goods.
The ASA claims that the promotion lacked any clarification about cryptocurrencies and their suitability for investment. According to the ASA, Bitcoin’s “free offering” simplifies what should be a serious and deliberate financial decision given the target audience, which may have limited knowledge of cryptocurrencies.
The ASA has also spoken out about an advertisement for the Kraken exchange at London Bridge, London’s central train station, hosted by its parent company, Payward. Management felt that people who saw the advertisement did not have time to comprehend the information stated, and the company’s disclaimer is unclear, since people may not even see this disclaimer.
“Consumers need to be clearly aware of the risks of investing in crypto assets. Firms need to make sure their ads are not misleading or socially irresponsible, capitalizing on consumers’ ignorance of complex and volatile products like cryptocurrencies, ”said ASA Complaints and Investigation Officer Miles Lockwood ).
ASA will continue to monitor ads for cryptocurrencies, including NFTs and fan tokens. Recall that in March, the department banned advertising of the Coinfloor cryptocurrency exchange about investing pension savings in bitcoin.
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