UK promoting watchdog bans crypto adverts for Coinbase and Kraken
The Advertising Standards Authority, or ASA, the United Kingdom’s unbiased promoting regulator, has taken down one other batch of cryptocurrency-related advert campaigns selling a number of main business corporations.
On Dec. 15, the promoting watchdog issued a number of rulings on advert violations involving six crypto-related corporations together with Coinbase, Kraken, eToro, Exmo, crypto dealer Coinburp and Luno crypto exchange. The ASA additionally issued an identical ruling for pizza chain Papa John’s.
All seven adverts or promotions had been banned for “irresponsibly taking advantage of consumers inexperience and for failing to illustrate the risk of the investment,” the rulings stated.
The ASA argued that Coinbase’s European department particularly put out a “misleading” promotion on its paid Facebook advert in July 2021, together with a textual content stating “five pounds in Bitcoin in 2010 would be worth over 100,000 pounds in January 2021.”
According to the promoting regulator, the advert “implied there would be a similar guaranteed increase in Bitcoin value over the next decade.” Coinbase Europe additionally “did not make clear that past performance was not necessarily a guide for the future,” the ASA famous.
Another ASA’s ruling was towards Kraken operator Payward, associated to a digital poster for Kraken seen in August 2021 at London Bridge station. The watchdog argued that the advert lacked a correct danger warning as a danger disclaimer was solely proven “for one second.”
“The risk warning only ran for one second at the beginning of a 20-second ad and we considered it presented the consumer with a large amount of information that would not be fully read or understood even if it was seen at all,” the ruling reads.
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The newest regulatory strikes by ASA be part of a variety of related rulings made earlier this 12 months because the authority has been actively searching and shutting down deceptive crypto adverts.
In May, the ASA took down one other advert marketing campaign by Luno exchange. The advert was proven throughout the London Underground community and on London buses this 12 months, with posters together with a picture of Bitcoin saying: “If you’re seeing bitcoin on the Underground, it’s time to buy.” The regulator beforehand banned an advert marketing campaign by Coinfloor exchange.