The UK Declares Crypto Ad Red Alert – Should We Expect More Bans?

This is not the first signal for the tightening advertising policy in cryptocurrencies. At the end of May 2021, the ASA demanded that the Luno cryptocurrency exchange change the advertising posted on the London transport network, recognizing it as ‘misleading.’

The New ASA Policy, Triggered by an FCA Warning

ASA plans to use AI and web scraping to sieve through the huge mass of online ads. Any advertisements found ‘misleading or irresponsible’ will be, of course, taken down. At the same time, those companies who promote cryptocurrency investments will be warned and may be required to include disclaimers in their ads.

This new policy is related to a warning issued by the Financial Conduct Authority in June. According to research done by FCA, those who decide to go into crypto investments based on advertising make a small percentage compared to the rest of crypto investors and come to regret their decision more often than the latter.

In addition, most of the crypto companies that put up their ads do not have a UK license, so the investors will not be able to claim damages legally should something go awry.

FCA Warns Citizens About Investments Risks

As FCA CEO Nikhil Rathi said during the ‘Our Role and Business Plan’ webinar, about 2.5 million UK citizens own some crypto. He notes that recently there has been ‘an explosion among younger people speculating on high-risk investments’ and warns people of the possible risks of losing all money invested in cryptocurrencies.

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