UK Ads Regulator Warns Crypto Companies to Comply with Rules

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The Ads regulator in the UK, The United Kingdom’s Advertising Standards Authority (ASA), has issued a note of warning to over 50 cryptocurrency companies to ensure their ads comply with the existing rules. The aim is to ensure there are no misleading ads that attract investors into crypto without knowing what is involved.

Crypto has exploded in popularity in recent years, we’re concerned that people might be enticed by ads into investing money they can’t afford to lose, without understanding the risks

ASA CEO, Guy Parker said.

Crypto ads becoming more popular

Crypto promotions are increasingly becoming a concern to regulators mainly because of the risks involved in crypto investments. Apart from this, there are also those who use ads to promote fraudulent businesses online to scam unsuspecting victims. Recently, Australian regulators, Australian Competition and Consumer Commission (ACCC) sued Meta (Facebook) for supporting fake crypto ads that have caused the loss of thousands of dollars by victims.

In the UK, ASA is the agency charged with the responsibility of overseeing digital and physical promotional campaigns in the United Kingdom. The agency made crypto policing its priority last year by placing crypto ads on “red alert”.

Crypto ads of companies such as eToro, Coinfloor, Ziglu and Coinbase have been pulled down by ASA and it warns that similar actions will be taken against any company that does not comply with the ads guidelines.

The recent notice reminds crypto companies of the rules guiding advertisements. They must state that cryptocurrencies are unregulated in the UK and acknowledge their volatile tendencies so that investors know the risks involved. It must also be clearly stated that crypto investment is not “trivial, simple, easy or suitable for anyone” and there must not be any sense of urgency in such ads. India’s ads regulator recently drafted a similar set of guidelines for crypto ads in the country as concerns mount.