The UK Advertising Standards Authority (ASA) banned seven cryptocurrency-related advertising campaigns, deeming they did not sufficiently reflect the risk of an investment. It is reported by BBC…
The agency targeted marketing promotions from Coinbase Europe, eToro, Papa John’s, Luno Money, Exmo Exchange, Payward and Coinburp.
All seven campaigns were “banned for irresponsible exploitation of consumer inexperience and failure to illustrate the risk of investment,” the publication quoted the regulator as saying.
The popular pizza chain Papa John’s was offering customers “£ 10 free bitcoins” on the site.
“Save £ 15 by spending £ 30 or more and get £ 10 worth of bitcoins from Luno!” The announcement said.
The company explained that the promotion was part of the Bitcoin Pizza Day celebration, and that offering a “free” cryptocurrency was different from a scenario where the consumer is given the opportunity to invest in a financial product.
The ASA found the announcement “oversimplifying what was a serious and potentially costly financial decision, especially in the context of the intended audience, which likely had limited knowledge of cryptocurrency.”
The regulator discovered an advertisement for the Bitcoin exchange Kraken on a digital poster from Payward at the London Bridge metro station. Although the announcement contained a rather lengthy disclaimer, the ASA found it confusing because “consumers would not have had time to understand the relevant disclaimer, if they ever saw it.”
Other crypto trading platforms, in whose ads the regulator found violations, promoted their services on various media platforms:
- eToro – Paid media advertising
- Exmo – YouTube video;
- Luno Money – in its own application;
- Coinbase Europe – Paid Advertising on Facebook
- Coinburp – Twitter post.
The bans are part of a broader ASA project that will update the rules for advertising cryptocurrencies. A spokesman for the department called this a “serious priority.”
“Consumers need to be aware of the risks of investing in cryptoassets, and companies need to make sure their ads are not misleading or socially irresponsible by exploiting consumer ignorance about these complex and volatile products,” he said.
As a reminder, in May 2021, the ASA recognized the Luno advertisement posted on the London transport network as “misleading”.
In November, the agency launched an investigation into the marketing campaign of the Floki Inu meme cryptocurrency. The public transport system of the British capital was also used for her.
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