UK Advertising Watchdog Bans Seven Advertisements for being ‘Misleading’ and ‘Irresponsible’

UK’s Advertising Standards Authority (ASA) banned seven cryptocurrency ads on Wednesday with strict warning to the advertisers

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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.

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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. ‍

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Source : bsc.news