Cryptocurrency commercials for Coinbase and Kraken have been prohibited by the UK Advertising Standards Authority.

ASA wants to be clear that previous crypto demonstrations have not been able to reproduce comparable conditions in the future. A number of cryptocurrency-related marketing campaigns that have been used to promote a number of significant firms have been suspended by the Advertising Standards Authority, or ASA, an independent UK regulator.



On December 15, the advertising watchdog issued a number of findings about ad breaches involving six crypto-related companies: Coinbase, Kraken, eToro, Exmo, crypto broker Coinburp, and crypto exchange Luno. The American Society for the Prevention of Cruelty to Animals (ASA) also issued an official warning to the Papa John's pizza franchise.

According to the judgement, the seven advertisements or promotions were prohibited for "irresponsibly exploiting novice customers and neglecting to communicate the danger of investing."

The ASA claims that in July 2021, Coinbase's European office particularly advertised a "misleading" promotion on its sponsored Facebook ad, suggesting that "five pounds in Bitcoin in 2010 will be worth more than 100,000 pounds."

The advertising regulator stated that this commercial "implies a comparable assured growth in the value of Bitcoin over the next decade." The ASA notes that Coinbase Europe "doesn't make it clear that previous performance is not indicative of future results."

Another ASA decision was made against operator Kraken Payward in August 2021, in relation to a digital Kraken banner that was visible at London Bridge station. Because the risk disclaimer was only displayed "for one second," the watchdog said that the ad did not include an adequate danger warning.

"We believe risk alerts to give customers with a vast amount of information that will not be properly read or comprehended even if seen at all," says the statement.

The ASA's recent regulatory step joins a series of similar rulings taken earlier this year because authorities have been actively tracking down and removing false crypto marketing.

In May, the ASA ordered the Luno exchange to stop running another ad campaign. With a sign that reads, "If you see bitcoin on the Underground, it's time to purchase," this ad is displayed across the London Underground network and on this London bus. Previously, the regulator had prohibited the Coinfloor exchange from running advertising campaigns.

Share:

No comments:

Post a Comment

Note: only a member of this blog may post a comment.

Hot Topic

Did the Ethereum Merge Go Wrong?

Ethereum is in a state of instability as a result of the merger. Was it all worth it? Some Ethereum supporters aren't so certain. What a...

counter, at the bottom of the page, in a table, div or under a menu.