More than 50 companies providing cryptocurrency services in the UK received a warning from the Advertising Standards Authority (ASA) to check their adverts for compliance with new guidelines.
The ASA said that the 50 companies on the list, which include Coinbase (COIN), eToro, Luno, and Crypto.com, are all those that have been previously subject to ASA decisions.
‘Red alert’
ASA, in a statement, said the warning is a “red alert” priority for them, as they recently banned many cryptocurrency advertisements for “deceiving consumers and being socially irresponsible.”
The new advice compels these companies to mention plainly in their advertisements that cryptocurrency is unregulated in the United Kingdom and that the worth of investments is “speculative and subject to loss.” They also must not mention or indicate that deciding to invest in cryptocurrencies is simple and easy. Additionally, they must not state that it is appropriate for everybody nor urge the public to immediately invest or inculcate fear of losing out. They are also warned not to put “low-risk investment” in their advertisements.
Deadline for compliance
Ads for cryptocurrency services must comply with this guideline by May 2 or risk being notified to the Financial Conduct Authority, the UK’s financial watchdog (FCA).
As a result of the government’s provision of greater regulatory authority, the FCA said in January that it would step up its regulation of crypto advertising.
The ASA has already sanctioned the likes of Bitcoin, Floki Inu, Arsenal Football Club, Kopparberg, and Blackpool Pleasure Beach for violating its laws. It will also engage with the Financial Conduct Authority (FCA) to take collective action.
Sarah Pritchard, FCA’s executive director of markets, said people who invest in crypto-assets should be “prepared to lose all their money.” The regulator will be monitoring cryptocurrency marketing, crypto exchanges, and promotions for transferring or providing crypto.
A request was made for comments from Coinbase, eToro, Luno, and Crypto.com regarding the new instructions, but there is no feedback yet at the time of writing.