Watchdog bans seven ads in crypto “red alert” – NEWS WORLD UPDATE

Seven cryptocurrency ads have been banned by the UK advertising watchdog.

The Advertising Standards Authority (ASA) says monitoring crypto-assets, like Bitcoin, is a “red alert priority” following concerns that many advertisements do not fully convey the risks of the investment.

The banned ads included a promotion by a pizza chain and Facebook ads for a large cryptocurrency exchange.

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The ASA says it hopes to produce new cryptocurrency advertising guidelines.

The seven advertisements or promotions were “banned for irresponsibly taking advantage of consumers’ inexperience and failing to illustrate the risk of the investment,” he said.

Companies whose ads broke the rules are:

Coinburp: A Twitter page for Coinburp, a cryptocurrency trading platform.
eToro (United Kingdom): a paid display advertising for eToro, an equity and cryptocurrency trading platform.
Payward: A digital poster for Kraken, an online cryptocurrency exchange.
Exmo Exchange: A YouTube Video Promoting the Exmo Cryptocurrency Exchange
Luno Money: An in-app advertisement for Luno, a cryptocurrency exchange service.
Coinbase Europe: A paid Facebook ad for Coinbase, a cryptocurrency exchange.
Papa John’s GB: A promotion on the Papa John’s pizza chain website and in a Twitter post.
The banned promotion from Papa John’s website offered consumers “Free Bitcoin worth £ 10”, as well as telling customers: “Save £ 15 when you spend £ 30 or more and get £ 10 of Bitcoin from Luno ! “

The company said this was part of its annual “Bitcoin pizza day” celebration, which would mark the exchange of two Papa John’s pizzas for 10,000 bitcoins in May 2010. Ten thousand bitcoins would be worth more than £ 350 million today. sterling ($ 462 million). ).

The company argued that the promotion did not comment on the cryptocurrency or its suitability for investment.

The channel said that Bitcoin’s “free” offering was entirely different from a scenario in which a consumer would be given the option of investing their own money in a financial product.

But the ASA felt that the offer “trivialized what was a serious and potentially expensive financial decision, especially in the context of the target audience who were likely to have limited knowledge of cryptocurrency.”

Cryptographic platforms
The advertisement for Kraken, which led to a complaint to the ASA, was seen at London Bridge station on a digital poster.

Although it contains a lengthy disclaimer, the ASA felt that “consumers would not have had time to understand the relevant information in the disclaimer, had it been seen at all, and that they were therefore not clear ”.

The move comes as some politicians question whether cryptocurrency ads should run on London trains and buses.

In November, the ASA announced that it was investigating adverts running on the metro for the Floki Inu cryptocurrency – a so-called “coin” named after billionaire’s dog Elon Musk.

This investigation is continuing, according to the ASA, although Floki Inu insists their ads follow the rules.

‘Red alert’
The bans are part of a larger project that will result in updated guidelines for advertising cryptoassets next year.

Miles Lockwood, the watchdog’s director of complaints and investigations, said: “Cryptoassets are a priority red alert issue for us.

“Consumers need to be aware of the risks of investing in crypto assets and companies need to ensure that their advertisements are not misleading or socially irresponsible by taking advantage of the lack of consumer awareness of these complex and volatile products,” he said. -he declares.

The ASA has said it will continue to review crypto asset announcements over the next several months, not only for cryptocurrencies, but also for NFTs and Fan Tokens.

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