UK’s ad regulator bans 2 Crypto.com promos for being ‘misleading’ and ‘irresponsible’ | Currency News | Financial and Business News

  • The UK’s advertising watchdog has banned two Crypto.com promotions to mislead consumers.
  • The regulator said these were “irresponsible and took advantage of consumers’ inexperience or naivety”.
  • Crypto.com responded to both allegations and noted that the ads had been “voluntarily removed” upon learning of the regulator’s concerns.
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The UK’s ad watchdog banned two Crypto.com promotions on Wednesday to mislead consumers.

The first ad, which was published in September 2021 in the Daily Mail app, said: “Immediately buy bitcoin with credit card.” The second ad, published in July 2021 in the Love Balls app, reads: “Earn up to 3.5% annually,” although the rate in fine print increased to 8.5%.

The Advertising Standards Authority determined that both ads were “misleading because they failed to explain investment risks” as well as “irresponsible and exploited consumers’ inexperience or naivety”.

The regulator noted that the first announcement did not make it clear to consumers that purchasing cryptocurrency using credit cards has some limitations. The association said the second announcement, meanwhile, did not explain the basis for calculating the earnings forecast.

Crypto.com responded to every claim made by the ASA and noted that the ads had been “voluntarily removed” upon learning of the regulator’s concerns.

“We value the collaborative dialogue and engagement from ASA regarding UK advertising in this relatively new industry, and we remain committed to working with them and with regulators around the world to ensure all our activities comply with the latest regulatory guidance,” a Crypto.com spokesperson said in an email. Email to Insider.

The Singaporean crypto platform defended its first announcement, saying that it promotes the speed with which users can purchase cryptocurrencies on their platform.

As for the second announcement, Crypto.com said it indicates that holders of cryptocurrency can generate revenue, not the cryptocurrency itself. The platform made it clear that existing customers will be aware of the risks that come with investing in cryptocurrencies.

Government authorities around the world ramped up their enforcement of space in 2021 as digital currencies swelled at some point in the year to a $3 trillion industry.

In December, the ASA banned ads for Arsenal football fan code, calling the ads “irresponsible” in failing to highlight the risks associated with cryptocurrency. On December 15, the regulator also challenged six crypto-related companies for alleged ad violations, including Coinbase, Kraken and eToro.

A campaign from Crypto.com last year included an ad campaign starring Matt Damon in October. Meanwhile, in November, the company bought the naming rights to the iconic Staples Center in Los Angeles, which will be the Crypto.com Arena for the next two decades.