The UK Advertising Standards Authority (ASA) has decided to officially ban ads for two mobile apps on the popular Crypto.com trading platform, which has helped make it easier to buy cryptocurrencies like bitcoin as well as profit from digital assets.
After the industry became aware of strict legislation on the alleged effects of cryptocurrency advertising, the ASA flagged marketing materials as violating a number of financial oversight rules, including failure to effectively identify investment risks, abuse of consumers’ lack of market understanding, and without specifying Restrictions on the purchase of cryptocurrency with credit. cards.
Crypto.com voluntarily removed ads when concerns arose, but discussed the nuances of ads with the regulator, stating that the goal of the first ad posted on the Love Ball app on July 30, 2021 was for users to “earn” up to 8.5 % “. annually ”, on returnable investments, and not on specific cryptocurrencies.
Likewise, according to Crypto.com’s written response, a follow-up announcement, which was posted on the Daily Mail app on September 1, was intended to showcase the fast process for buying cryptocurrencies on their platform – “Buy Bitcoins with Credit Card Immediately.” – rather than offering direct business advice to consumers.
Related: UK Advertising Oversight Agency Bans Cryptocurrency Ads On Coinbase And Kraken
Crypto.com’s U.S. marketing efforts have made its brand recognizable among a regular audience. Matt Damon’s TV commercials, a 20-year lease of the rights to the name of the historic Staples Center now known as Crypto.com Arena for $ 700 million, and the launch of non-fungible tokens or NFT in partnership with the UFC, all expanded the platform’s ambitions. …
The ASA concluded by advising Crypto.com that future marketing materials of this kind should be “clear enough so that the value of an investment in a cryptocurrency is volatile and may decline or rise, and cryptocurrencies are not regulated.”
In addition, the article does not “irresponsibly exploit a lack of experience or consumer confidence by irresponsibly encouraging investment in cryptocurrency using credit cards,” that “the use of credit cards may be associated with higher interest rates and additional fees, and that some creditworthiness. bans card issuers. ”
In December 2021, ASA flagged a number of cryptocurrency-related companies for violating advertising rules in their marketing campaigns.
On December 15, the ASA noted marketing campaigns by Coinbase, Kraken and eToro, including misleading investment materials, and on December 22, Arsenal FC and Chiliz accused the blockchain company of “exploiting consumer inexperience with cryptocurrency” in the release and its aftermath. Promote the ghost club. , $ AFC.
Earlier in the month, MPs or members of the finance committee asked the country’s parent financial authority, FCA, not to compare cryptocurrency investments to traditional investments and that they could be exploited by criminals looking to launder money. … …