The UK’s Advertising Standards Authority (ASA) is preparing to target misleading cryptocurrency advertisements.
The ASA’s initiative follows an ad campaign by crypto exchange firm Luno, which featured the slogan “If you’re seeing bitcoin on the Underground, it’s time to buy” alongside the Bitcoin logo on the London Underground and on buses. The ASA determined that Luno’s advertisement conveyed the impression that investing in bitcoin was “straightforward and accessible,” neglecting to include warnings that cryptocurrencies like bitcoin lack consumer protections.
The ASA has indicated that monitoring the marketing activities of unregulated crypto trading platforms will be a top priority moving forward. “We see this as an absolutely crucial and priority area for us,” stated Miles Lockwood, director of complaints and investigations at the ASA, in an interview with the Financial Times. “Where we do find problems, we will crack down hard and fast.”
One focus for the ASA will be social media accounts that promote crypto ventures without adequately disclosing the financial risks associated with investment.
In parallel, the UK’s Financial Conduct Authority (FCA) has been issuing warnings to consumers about the risks of investing in unregulated cryptocurrencies. The FCA raised concerns about crypto advertising as early as 2018 as part of the efforts by the Cryptoassets working group, which includes representatives from the Treasury, the Bank of England, and the FCA.