U.K. Advertising Watchdog Issues ‘Red Alert’ Notice on Crypto Ads

The U.K.’s Advertising Standards Authority (ASA) has issued an enforcement notice to over 50 companies that have advertised cryptocurrencies services ahead of an impending clampdown on “misleading and irresponsible crypto ads” in the country. Among these companies are Coinbase Europe Ltd, Arsenal Football Club, and eToro’s U.K. arm as well as Floki Ltd. U.K.’s ASA Issues Notice on Crypto Ads The new guidance issued on Tuesday requires advertisers to clearly state that crypto is unregulated in the U.K. and that the “value of investments is variable and can go down.” Additionally, ads must not “state or imply that investment decisions are trivial, simple, easy or suitable for anyone” or “imply a sense of urgency to buy or create a fear of missing out, or that investments are low risk.” Commenting on the development, Guy Parker, chief executive of the ASA, said in a statement: “Crypto has exploded in popularity in in recent years. We’re concerned that people might be enticed by ads into investing money they can’t afford to lose, without understanding the risks.” Companies advertising crypto services have until May 2 to review their ads under this guidance, after which non-compliant advertisers will be reported to the financial watchdog the Financial Conduct Authority (FCA). The ASA, back in November made crypto-assets a “red alert” priority over rising concerns on ads related to cryptocurrencies, utility tokens, and non-fungible tokens (NFTs).

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