The Advertising Standards Authority (ASA), has issued an enforcement notice to more than 50 companies that advertise cryptocurrencies, insisting they review their ads and comply with regulations.
The enforcement notice, written by the Committee of Advertising Practice (CAP) and enforced by the ASA, informs the crypto industry on how to stick to advertising regulations.
The advertising authority guidance asserts that advertisers must clearly state that cryptocurrencies are unregulated in the UK and that the value of investments can fluctuate.
Adverts must also not imply that investment decisions are “trivial, simple, easy or suitable” for anyone, it said.
In addition, campaigns should not create a fear of missing out, state that investments are low risk, or encourage a sense of urgency to buy.
“Most people don’t fully understand how cryptocurrencies work, how volatile they can be or how they are not regulated there is a real risk that people may lose money,” the ASA said.
“This is a ‘red alert’ priority issue for us and we’ve recently banned several crypto ads for misleading consumers and for being socially irresponsible.”
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Earlier this month the ASA banned a Floki cryptocurrency ad believed to be trivialising investment and exploiting the consumer’s fear of missing out.
Additionally, in clamping down on problematic crypto ads the ASA has worked alongside the Financial Conduct Authority (FCA) to enforce action against companies unwilling to abide by the rules.
“People should be wary of any promotion promising high investment returns and do further research before investing, including through the FCA’s InvestSmart website,” FCA executive director of markets Sarah Pritchard said.
ASA chief executive Guy Parker added: “Crypto has exploded in popularity in recent years. We’re concerned that people might be enticed by ads into investing money they can’t afford to lose.”
“Working alongside the FCA, we’ll take strong action against any advertiser who fails to ensure that their ads are responsible.”
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