UK's Advertising Standards Authority Issues Enforcement Notice
The ASA has issued an enforcement notice to over 50 firms advertising crypto services. This move comes as part of the nationwide crackdown on UK crypto adverts.
In an official statement, the advertising authority pointed out that the notice provided clear guidance for crypto ads. It urged all companies to review their ads to ensure that they are in line with the new guidance.
The new guidance mandates advertisers to clearly state that cryptocurrencies are still unregulated in the U.K. and that the value of their investments could go down. The ads must also not "imply that investment decisions are trivial, simple, easy or suitable for anyone" or "imply a sense of urgency to buy or create a fear of missing out, or that investments are ‘low risk’."
The ASA noted that the notice applies to crypto promotions that are targeted at UK consumers and those targeted at a global audience on behalf of UK-based companies.
Following the increase in crypto ads in recent months, the ASA has intensified its efforts to scrutinize crypto ads. The regulator banned "irresponsible" ads from Coinbase, Kraken, Luno, eToro, Papa John's and Arsenal.
ASA to Work With FCA to Enforce New Guidance
The ASA stated that it will be working closely with the Financial Conduct Authority (FCA) to take action against companies that do not comply with the new guidance.
The ASA warned that companies advertising crypto services have until the 2 May 2022 to ensure their ads meet the new guidance. Companies that fail to do so will be reported to the FCA.
The ASA's chief executive, Guy Parker, stated "Working alongside the FCA, we’ll take strong action against any advertiser who fails to ensure that their ads are responsible."
Sarah Pritchard, Executive Director of Markets at the FCA reiterated the FCA's earlier warnings about crypto investments and pledged to continue helping the ASA to combat irresponsible ads.
The full ASA Enforcement Notice is here:
