The UK is taking aggressive measures in an attempt to curb misleading cryptocurrency ads. They will be regulated under the same rules for financial promotions and the Financial Conduct Authority will soon begin consulting on their proposed financial advertising rules for cryptocurrencies.
Cryptocurrencies can offer exciting opportunities, but consumers should not be sold products with misleading claims. This comes after a year of increased interest in the currencies that saw more that 200 ads from fintech companies flooding London’s underground rail network and buses that prompted action from the U.K.’s Advertising Standards Authority who banned seven ads in December from Coinbase and Papa John’s among others for irresponsibly taking advantage of consumers’ inexperience.
Britain’s ASA has already taken action against several crypto adverts. The regulator banned seven ads in December from companies including Coinbase and Papa John’s for “irresponsibly taking advantage of consumers’ inexperience.”
It also blocked a promotion from the crypto exchange Luno, which encouraged people to buy bitcoin without warning of the risks involved in trading cryptocurrencies. The ASA is on ‘red alert’ over the issue.
While bitcoin had a stellar year in 2021, climbing almost 60%, it and other digital tokens are notoriously volatile. They’ve been known to rise or fall more than 10% in a single day. Bitcoin is currently down about 40% from an all-time high of nearly $69,000, which it hit in November.
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