The Advertising Standards Authority of Ireland (ASAI) is becoming increasingly concerned with crypto advertisements. Since the beginning of 2019, it has received four complaints about advertisements. Concern was raised after two Floki Inu advertisements were seen on the sides of Dublin buses.
“Missed Doge?” reads one of the advertisements. “Find Floki.” Similar advertisements have lately surfaced in London. “Doge” is a reference to “Dogecoin,” the first meme coin (with no intrinsic value) launched in 2013. Doge was followed by Shiba Inu and finally Floki Inu.
The four advertisements are still being reviewed, according to an ASAI spokeswoman. “We are aware that there is a growing concern in other jurisdictions concerning cryptocurrency advertising, and we are keeping an eye on developments,” they stated.
These concerns drew the attention of Irish authorities at a time when UK regulators have issued guidelines aimed at reducing misleading advertising. All crypto advertisements in the United Kingdom will be subject to the same restrictions that apply to stocks and insurance.
Digital assets are not recognized in Ireland
The Central Bank of Ireland does not recognize digital assets because they are not products of authorized financial firms. In recent years, the central bank has issued warnings to customers regarding investing in cryptocurrencies. “We reinforce those cautions,” the bank said in response to the growing number of complaints.
“The central bank recognizes the rapid growth of the crypto ecosystem, and it continues to identify and closely monitor risks linked with crypto assets,” a spokesperson said.
Crypto does not pose a threat to financial stability, both nationally and worldwide, according to Gabriel Makhlouf, Governor of the Central Banks, in a recent blog post. However, “their volatility could lead to losses, which could have consequences for financial stability” as a result of their growing popularity. Makhlouf compares the present enthusiasm for BTC and ETH to the Dutch Tulip Bubble, which was dubbed “Tulip Mania” in the 1600s.
The European Union is concerned about crypto adverts risk
Concerns are growing throughout the European Union that crypto advertising efforts are failing to disclose the considerable risks involved with digital assets. The organization is working on a financial regulatory framework for cryptocurrencies, including the Markets in Crypto Assets framework (MiCA), which is expected to be approved later this year. The implementation of a licensing scheme for service providers is part of MiCA.