ASA, the United Kingdom’s free publicizing regulator, has shut down another round of crypto money-related advertising campaigns. Urging a few major industry players to explain that prior cryptocurrency rallies do not guarantee similar outcomes in the future.
The Advertising Standards Authority took various decisions on ad violations which included crypto-related companies on Dec. 15, comprising Coinbase, Kraken, eToro, Exmo, crypto broker Coinburp, and Luno crypto exchange. Papa John’s Pizza received a similar judgement from the ASA.
“Irresponsibly taking advantage of customers”
The ASA’s new regulatory actions follow a series of similar judgements earlier this year. As the body has been actively tracking down and shutting down misleading cryptocurrency advertisements.
According to the decisions, the authority restricted the seven advertisements or campaigns for “irresponsibly taking advantage of customers’ incompetence. And neglecting to explain the investment risk”.
The ASA said that Coinbase’s European office expressly advertised a “misleading” deal on a sponsored Facebook ad in July 2021, with text that stated, “five pounds in Bitcoin in 2010 would be worth almost 100,000 pounds in January 2021.”
The ad “implied there would be a similar certain gain in Bitcoin value over the following decade”, as per the advertising watchdog. The ASA also stated that Coinbase Europe “did not make clear that past success was not certainly a reference for the future”.
The ASA took also a decision against Kraken provider Payward, which linked to a digital Kraken poster displayed at London Bridge station in August 2021. The commission claimed that the advertisement missed an appropriate danger warning. Because the risk statement was only visible for “one second.”
“We considered the risk warning presented the consumer with a vast volume of information that would not properly read or comprehended even if it was seen at all”, the judgement states.
Other campaigns prohibited by the regulator
The ASA shut down another Luno exchange ad campaign in May. This year, posters with an image of Bitcoin displayed on the London Underground and on London buses. With the message: “If you see bitcoin on the Underground, it’s time to buy”. A commercial campaign by Coinfloor exchange was previously forbidden by the regulator.