The UK’s Advertising Standards Authority (ASA) has confirmed an official ban on two mobile app commercials from the famous trading platform Crypto.com. The latter advertised the convenience of purchasing cryptocurrencies. Also, collecting yield rewards on digital assets.
Thus, ASA, which has gained notoriety in the industry for their strict legislation on the proposed implications of a cryptocurrency advertisement; has flagged the marketing material for violating a number of financial watchdog rules; including not effectively stating the investment’s risk potential; abusing consumers’ lack of market understanding, and failing to specify the limitations of purchasing crypto with credit cards.
When the issue was raised, Crypto.com voluntarily removed the ad. However, the company debated the nuances of the ads with the regulator; stating that the goal of the first ad. Which was published on the Love Ball app on July 30, 2021; was for users to “earn up to 8.5% p.a.” through yield investments, not specific crypto assets.
ASA flagged a number of crypto-related businesses for breaking advertising laws
Similarly, according to Crypto.com’s written response “buy Bitcoin with credit card instantly”; was intended to highlight the speedy process of purchasing crypto assets on their platform; rather than directly advising consumers to engage in trading activities.
Crypto.com’s marketing efforts in the US have helped the company gain popular prominence. The creation of non-fungible tokens (NFTs) in cooperation with the UFC; as well as Matt Damon TV commercial, have all boosted the platform’s goals.
Earlier in December, ASA flagged a number of crypto-related businesses for breaking advertising laws in their marketing campaigns.
Taking advantage of customers’ incompetence and neglecting to explain the investment risk
ASA took various decisions on ad violations which included crypto-related companies on December 15; comprising Coinbase, Kraken, eToro, Exmo, crypto broker Coinburp, and Luno crypto exchange. Papa John’s Pizza received a similar judgment from the ASA.
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”.
Later, the Arsenal football club was in dispute with ASA over the crypto ad. Arsenal was one of many football clubs to work with blockchain technology Chiliz to establish a fan currency earlier this year. The club advertised its fan token AFC on its official Facebook page on August 12 this year. Which the ASA has since prohibited for allegedly violating its advertising guidelines. According to the agency, the article did not emphasize the investment’s hazards.