UK’s Advertising Standards Authority (ASA) is set to begin a crackdown on false crypto advertisements. This regulation will particularly find at fault any crypto advertisement without a disclaimer on the risks involved.
The Advertising Standards Authority (ASA), a UK regulator, has declared a nationwide crackdown on false crypto advertising.
According to the ASA, most crypto advertisements are deceptive and do not include any warnings that individuals may be ignorant of.
The UK’s crypto crackdown is starting with adverts, both offline and online. The anticipated campaign will begin with the removal of unclear advertisements from social media platforms.
Director of complaints and investigations at the ASA, Miles Lockwood, told Financial Times that the crackdown campaign will be “hard and fast” if there are violations.
Cryptocurrency is a “red alert” priority, according to Mike Lockwood, since it may represent a threat to the less informed and sensitive audience of economic and business ads.
According to him, the ASA will warn crypto advertisers and businesses, and the digital currency industry will be compelled to provide disclaimers in otherwise deceptive marketing.
“We see this as a critical and priority area for us…Where we find problems, we repress harshly and quickly.”, Lockwood told Financial Times.
The Financial Conduct Authority (FCA) issued measures to protect the public from being duped by fraudulent crypto advertisements that could lead to rash decisions.
Consumers should avoid buying popular crypto items, according to the FCA, since they “should be prepared to lose all of their money.” The FCA, on the other hand, had had little success in spreading the word.
Luno, the cryptocurrency exchange and a subsidiary of Barry Silbert’s Digital Currency Group, placed a crypto advertisement on the UK subway walls two months ago, which ASA rejected.
The commercial was deemed “misleading” because it did not include any warnings or disclaimers. “If you see Bitcoin on the tube, it’s time to buy,” the slogan said.
Without a disclaimer, the ad encourages individuals to acquire the extremely pricey Bitcoin without informing them of the currency’s unpredictable nature.
With ASA’s impending campaign, they have promised to begin sweeping the offline and internet advertising clean by hiring search parties, in addition to putting down deceptive and problematic ads.
“We recognize that there are certain types of media that we have not been able to fully address so far,” Louise Maroney, Head of financial complaints at ASA, told Financial Times.