The UK Advertising Standards Authority considered that 50 crypto entities should review if they breach advertising policies.
The UK Advertising Standards Authority (ASA) revealed a new enforcement notice to more than 50 entities that currently have advertised digital currency services, suggesting they should review their advertisements to ensure they comply with the new Guidance.
The country highlighted in January this year that it would reinforce procedures on crypto-related advertisements. Earlier, in December 2021, seven crypto listings from popular entities, including exchanges, got prohibited. Recently, the ASA strictly prohibited advertisements for Floki Inu, calling them irresponsible.
The ASA revealed valuable information regarding the situation. It said that they led a Compliance Notice to more than 50 entities that advertise digital assets, directing them to review their ads and ensure they comply with the policies so that customers don’t feel uncomfortable.
The guide says that the Compliance Notice brings Guidance to the crypto industry on complying with the policies and warns that there would be a vigilance over compliance and sanctions if there is zero evolution on the subject.
The Guide Requires Advertisers
The Guidance must show that digital assets don’t face regulations in the UK and that the value of investments fluctuates and may decline from time to time.
The Guidance must not imply that investment decisions are not necessary, simple, easy, or appropriate for anyone. They should not mean a sense of urgency to purchase or create fear of losing or that the investments represent a low risk.
The ASA expressed that most users do not understand how digital assets operate, how volatile they can be, or how far from regulations they are; there is an actual risk of people losing money.
The notice applies to advertisements for digital currencies, crypto exchanges, and promotions that might include transferring or supplying digital assets directed at UK customers.
The ASA Compliance team highlighted that it would lead to follow-up vigilance. If troublesome ads keep appearing after May 2, they will apply particular enforcement action to ensure a level of compliance. This action will include non-compliant advertisers reporting to the FCA, who have contributed to distributing the Compliance Notice.
Crypto increased its popularity in recent years. General concerns are pointing out that ads lure people into spending funds they can’t afford to lose without knowing the risks these investments usually imply.
Sarah Pritchard Also Spoke Regarding the Situation
Sarah explained that she would continue to contribute with the ASA to cover the unclear crypto advertising. Users must know about any promotion that promises high investment returns and do more research before daring to invest, including through the FCA’s InvestSmart website.
By: Jenson Nuñez
