UK’s Advertising Standards Authority (ASA) banned seven cryptocurrency ads on Wednesday with strict warning to the advertisers
Crypto Advertisements
Papa John’s Pizza, Coinbase, Kraken, Etoro, Luno, Coinburp, and Exmo were reprimanded by the United Kingdom’s (UK) Advertising Standards Authority (ASA) for misleading and irresponsible contents in their respective advertisements.
The advertising watchdog says that the advertisements are ‘misleading,’ ‘irresponsibly taking advantage of consumers’ inexperience’ and ‘failing to illustrate the risk of investment.’ The advertisers were given specific instructions to comply with the advertising standards.
The advertisement on Facebook ad by Coinbase that was reprimanded is a text that reads:
‘“£5 in bitcoin in 2010 would be worth over £100,000 in January 2021. Don’t miss out on the next decade – get started on Coinbase today.”
In respect of each violation, the ASA issues a set of guidelines and the accompanying cautionary statements for the advertisement. UK watch bodies have also been after Binance as well as of late, with the world’s largest exchange zeroing in on derivatives users as it seeks FCA approval.
Tackling Irresponsible Advertisements
The authority takes a very strict approach to inaccurate, misleading, and irresponsible advertisements. One of the reasons why the United Kingdom adopts a very paternalistic policy is the widespread belief that any crypto investment will return astronomical gains. Statements perpetuating that belief is without a doubt an irresponsible act.
ASA says on its site:
‘The Financial Conduct Authority (FCA) and Action Fraud warned that in 2018/19 victims of crypto and forex investment scams had lost over £27 million in total.’
It is unfair to classify the advertisements by the seven entities listed by ASA in the category of scams. But caution must be exercised for crypto investments because of the inherent volatility still within crypto markets.
Conditions Imposed
The advertisement ban is not a blanket ban on crypto products. It was enforced because of certain concerns. In the case of Coinbase’s banned advertisement, the authority provided specific instructions for future compliance.
The public is generally excited about crypto assets and the promises of good investment returns. Although crypto scams have reduced significantly because of regulation and proper access to licensed entities, other concerns emerge. Investors fail to exercise proper risk management and partake in products that have little or no value.
This will improve overtime as regulation matures and investors are better educated on the fundamentals of crypto investments.
Don’t forget to download the BSC News mobile application on iOS and Android to keep up with all the latest news for Binance Smart Chain and crypto! Check out the DeFi Direct Linktree for all the access links!
Source : bsc.news
Founded in 2020, BSCNews is the leading media platform covering decentralized finance (DeFi) on the Binance Smart Chain (BSC). We cover a wide range of blockchain news revolving mainly around the DeFi sector of the crypto markets. BSCNews aims to inform, educate and share information with the global investment community through our website, social media, newsletters, podcasts, research, and live ask me anything (AMA). Our content reaches hundreds of thousands of global investors who are active in the BSC DeFi space.
BSC NEWS is a private news network. All posts posted by this user belong 100% to bsc.news All rights are reserved to BSC NEWS for more information about BSC NEWS contact BSC NEWS HERE.