UK Advertising Watchdog Requires Crypto Companies to Review Their Ads

The UK Advertising Standards Authority (ASA) has issued an Enforcement Notice to over 50 companies which advertise cryptocurrencies, instructing them to review their ads and to ensure they understand and are complying with the rules so that consumers are treated fairly.    

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The Enforcement Notice provides guidance to the crypto industry on how to stick to the rules and warns that ASA will monitor for compliance and implement sanctions if they do not see improvements. The guidance requires that advertisers:

• ​should clearly state that cryptocurrencies are unregulated in the UK and that the value of investments are variable and can go down

• ​must not state or imply that investment decisions are trivial, simple, easy or suitable for anyone

• ​must not imply a sense of urgency to buy or create a fear of missing out, or that investments are 'low risk'

"This is a 'red alert' priority issue for us and we've recently banned several crypto ads for misleading consumers and for being socially irresponsible,"the authority stated."The notice continues our work in clamping down on problem crypto ads. As part of this, we are working closely alongside the Financial Conduct Authority (FCA) to take action against those who appear unable or unwilling to abide by the rules."

The notice applies to ads for cryptocurrencies, crypto exchanges and ads or promotions which otherwise involve the transfer, sale or supply of cryptocurrencies, targeted at UK consumers or that are targeted globally on behalf of UK-based advertisers.

The ASA's Compliance team will conduct follow-up monitoring and if problem ads persist after 2 May, they will take targeted enforcement action to ensure a level playing field.