The UK’s Advertising Standards Authority (ASA) has decided to ban seven cryptocurrency advertisements on the grounds of being misleading and “irresponsible taking advantage of the inexperience of consumers and failing to articulate the risks of investments.” Banned ads include popular pizza chain Papa John’s Pizza as well as several reputable crypto exchanges such as Coinbase, Kraken, eToro and Luno. The regulator also declared crypto assets a “red-alert priority”.
In addition to giving each company specific instructions on what they must do in order to comply with its advertising standards in the future, the ASA ordered all companies to ensure they do not reappear.
The UK ad watchdog explained, “The ads were addressed to a general audience and we recognized that those who engaged in promotion involving buying pizza were likely to be inexperienced in their understanding of cryptocurrencies and the risks inherent in doing so. ” ,
The ads included an ad by pizza chain Papa John’s, which promoted “£10 worth of free bitcoin”. [roughly Rs. 1,017.44]”and” save £15 [roughly Rs. 1,526.51] When you £30. Spend [roughly Rs. 3,052.32] or more and £10. Receive [roughly Rs. 1,017.44] Bitcoin price from Luno!” on its website and Twitter. The authority considered whether these ads were irresponsible as they “taken advantage of the inexperience or creditworthiness of consumers” and made frivolous investments in crypto.
Papa John’s said the ads didn’t comment on investing Bitcoin And the promotion only offered a mechanism for customers to receive free bitcoins. He compared the promotion to a discount or cashback offer on the products, the only difference being that the savings were paid for in bitcoin.
But the ASA said that as part of the promotion a consumer would have to set up an account with Luno, a cryptocurrency exchange that gave consumers the option to trade in the cryptocurrency with promotional amounts of bitcoin or their own money.
crypto exchange platform coinbase A paid-for Facebook ad was also banned, which read “£5.” written text was included [roughly Rs. 508.83] #Bitcoin will be worth over £100,000 in 2010 [roughly Rs. 1.01 crore] in January 2021. Don’t miss the next decade – get started on Coinbase today.”
Under the heading “Coinbase”, a list of bullet points included text that said “simple and easy to use”, “never hacked” and “reliable”. A list of bullet points contained the text under the title “The Competition”. referred to as “irregular”. At the bottom of the post, the text says “Buy bitcoin in 5 minutes with as little as £25”. [roughly Rs. 2,543],
Coinbase said the ad did not state or imply that cryptocurrencies are an investment. It said consumers were made aware of relevant risks through their user agreement and had the opportunity to learn more through the “Learn” pages on their website and through their “Earn” product. It explained that through those resources they clarified that cryptocurrencies were a high-risk product.
Coinbase faced additional charges for misleading consumers because its advertising referred to its competitors as “unregulated,” implying that Coinbase was regulated. The ASA made a clear distinction between companies that can be regulated by the FCA and cryptocurrency services that are not in general.