The advertising regulator stated that bitcoin is a complex investment, and it implies many risks. Future campaigns should add clear warnings about investing with cryptocurrencies.
The UK’s Advertising Standards Agency (ASA) ordered the removal of bitcoin ads across London’s transport network because they consider it irresponsible and misleading. The banned notices come from a campaign launched in December last year by Singapore-based cryptocurrency exchange Luno.
The ads show an image of the cryptocurrency along with a phrase stating, “If you see bitcoin on the subway [or on a bus], it’s time to buy.” However, the agency believes that it is irresponsible to take advantage of the lack of experience of consumers and therefore every ad should disappear from the public immediately.
In its opinion, issued on May 26, the ASA adds that the notices intend to convince the people that investing in bitcoins is a very simple and accessible activity when the fact is that investing in bitcoin is a very complex process, and it implies a series of risks and possible losses.
The advertising regulator said it was acting in response to three complaints against the Luno exchange “for failing to warn on its posters of the risks posed by investing in bitcoin.” Luno said in response that they would add a proper risk warning to his future campaigns. However, the agency said that the company must turn down the current format of its campaign.
For the ASA, any notice about bitcoin must show that the value of the cryptocurrency is not stable and that neither the exchange nor the crypto has proper regulation. In addition, it asks companies to not seek to exploit the lack of consumer experience by reflecting the process of investing in digital assets as a simple and easy activity.
The Bitcoin ads are Under a Magnifying Glass
Notably, Luno’s is not the first bitcoin ad campaign that the ASA has prohibited. In mid-March, the Coinfloor exchange made an announcement that was also labeled as misleading for irresponsibly advocating cryptocurrency as an investment.
According to British media, it was a full-page ad published in a local newspaper that read the following message: “There is no point keeping your money in the bank” and included a testimony describing bitcoin as “digital gold.”
Last year experienced a 42% increase in the popularity of cryptocurrencies in theUnited Kingdom. A study published by the Financial Conduct Authority (FCA) states that the British population is familiar with digital assets. They are aware of the lack of a regulatory framework on them, and they understand the risks of volatility.
Spain is also growing; among its current plans is the regulation of outdoor advertisements that promote cryptocurrencies. A law reform, approved by the Extraordinary Council of Ministers on March 12 of this year, gave the National Securities Market Commission the green light to stipulate what kind of advertising content cryptocurrency companies can use during their spreading campaigns.
By: Jenson Nuñez
