UK advertiser ASA continues crypto ad banning spree

The UK’s Advertising Standards Authority, or ASA, has agreed to formally ban two mobile app ads from popular trading platform Crypto.com that promoted the ease of buying cryptocurrencies, such as Bitcoin, as well as earning rewards returns on digital assets.

Gaining notoriety within the industry for its strict legislation on the proposed effects of cryptocurrency advertising, the ASA flagged marketing materials for breaching a number of financial control rules, including failing to effectively identify investment risks, misusing consumers’ lack of market understanding and not specifying purchase restrictions. Cryptocurrency with credit cards.

Crypto.com voluntarily removed the ad once it aroused concern, but has discussed the nuances of the ads with the regulator, stating that the intent of the opening ad – which was posted on the Love Ball app on July 30, 2021 – is that users can “earn up to 8.5%.” annually” by return investments, not specific crypto assets.

Similarly, according to the written response from Crypto.com, the subsequent announcement, which was published in the Daily Mail app on September 1, aims to showcase the quick process of purchasing crypto assets on their platform – “Buy Bitcoin with Credit Card Immediately” – as a conflict of submission Direct advice to consumers to engage in commercial activities.

Related: UK ad watchdog agency bans cryptocurrency ads on Coinbase and Kraken

Crypto.com’s US marketing campaigns have driven recognition of its brand to the mainstream audience. Matt Damon TV commercial, a $700 million twenty-year lease purchase of the naming rights to the historic Staples Center, now known as Crypto.com Arena, as well as the launch of Non-Foldable Tokens, or NFT, in partnership with the UFC, all sought platform ambitions.

Cointelegraph spoke to a representative at Crypto.com to discuss its assertion that it would go “beyond” the regulator’s basic requirements on financial compliance issues, saying:

“We believe that building a fully regulated industry is the best way to accelerate the world’s transition to cryptocurrency, which has always been our mission. Engaging regulators to ensure compliance and build trust remains a top priority for Crypto.com.”

Concluding their assessment, ASA Crypto.com advised that future marketing materials of this nature should make it clear enough that the value of investments in cryptocurrency was variable and could go down or up and that cryptocurrency was unregulated.

Besides, the material does not “irresponsibly take advantage of consumers’ lack of experience or credibility by irresponsible encouragement to invest in cryptocurrencies with a credit card,” as well as that “credit card use can be subject to higher interest rates, fees and that Some credit card issuers prohibit the purchase of cryptocurrency.”

Later in our discussion, Crypto.com outlined their intentions to work in conjunction with the ASA Guidelines and Policies when creating and suggesting new marketing campaigns for their UK audience, noting:

“We value the collaborative dialogue and engagement from ASA regarding UK advertising in this relatively new industry, and remain committed to working with them and with regulators around the world to ensure all our activities are in line with the latest regulatory guidance.”

In December 2021, the ASA flagged a number of crypto-related companies for violating advertising rules in their marketing campaigns.

On December 15, the ASA flagged marketing campaigns from Coinbase, Kraken, and eToro, among others, for misleading investment material. On December 22, Arsenal Football Club and Chile accused the blockchain of “taking advantage of consumer inexperience with crypto assets” in the issuance and subsequent promotion of the club’s fan token, AFC.

Earlier that month, members of Parliament, or MPs, of the Treasury Select Committee, the country’s umbrella financial body, the FCA, appealed that investments in the cryptocurrency market should not be compared to traditional investments, and that they could be used by criminals seeking to launder money.