The UK Advertising Standards Authority (ASA) has banned an NFT promotion campaign launched in July by cryptocurrency exchange Crypto.com and Turtle United on Facebook.
The British regulator clarified that advertising stories relating to non-fungible tokens do not report on the risks of investing in such assets. In addition, the advertisement does not indicate the amount of fees that users must pay for transactions. The agency called the ad irresponsible and aimed at inexperienced users.
Crypto.com management has responded to the ASA’s claims by stating that the ad is no longer relevant. In addition, Crypto.com does not consider the NFTs available on the platform, including artist work and sports collectibles, to be “of a financial nature.” The management of the exchange believes that collectible tokens should not be subject to ASA requirements, so the profit from the sale should not be subject to capital gains tax.
The regulator had similar complaints about the Turtle United project. In an advertisement for Turtle United collectible tokens, the organizers of the project claim that their NFTs are of great value to holders. And that means guaranteed profits, says the ASA. Turtle United management did not respond to the regulator’s complaint.
Earlier, the ASA said it would increase its oversight of cryptocurrency advertising. In August, the agency recommended that football clubs refrain from promoting fan tokens in order not to mislead users. Last year, the regulator banned advertising from the cryptocurrency exchange Luno about investing in bitcoin, as well as advertising from the trading platform Coinfloor about investing pension savings in bitcoin.
Source: Bits
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