British advertiser ASA continues to vigorously ban encrypted advertising

The British Advertising Standards Agency (ASA) has ruled that two mobile app ads from the popular trading platform Crypto.com are officially banned. These ads promote the convenience of buying cryptocurrencies such as Bitcoin and obtain revenue rewards through digital assets.

ASA is notorious in the industry for its strict legislation on the proposed impact of cryptocurrency advertising, marking marketing materials as violating many financial regulatory rules, including failure to effectively explain the potential risks of investment, abuse of consumers’ lack of understanding of the market, And the restrictions on the use of credit cards to purchase cryptocurrency are not specified.

Once the question was raised, Crypto.com voluntarily deleted the ad, but debated the nuances of the ad with the regulators, and pointed out the intention of the first ad-published on the Love Ball app on July 30, 2021- Allow users to “earn up to 8.5% per year”, which is implied by income investment rather than specific crypto assets.

Similarly, according to Crypto.com’s written response, an advertisement subsequently published on the Daily Mail newspaper app on September 1 was intended to show the fast process of purchasing crypto assets on its platform-“Buy immediately with a credit card Bitcoin”—as opposed to directly advising consumers to engage in trading activities.

Related: UK advertising regulator bans crypto advertising on Coinbase and Kraken

Crypto.com’s marketing attempts in the United States have pushed its brand awareness to mainstream audiences.This Matt Damon TV Commercial, Purchased a 20-year lease of USD 700 million for naming rights The historic Staples Center is now called Crypto.com Arena, And launch Non-fungible tokens, or NFTs in cooperation with UFC, Have expanded the ambitions of the platform.

At the conclusion of the assessment, the ASA recommended that Crypto.com, in the future, such marketing materials must “clear enough to show that the value of cryptocurrency investments is variable, may fall or rise, and that cryptocurrencies are not regulated.”

In addition, the material will not “irresponsibly take advantage of consumers’ lack of experience or credibility by irresponsibly encouraging the use of credit cards to invest in cryptocurrencies”, and “use of credit cards may be subject to higher interest rates, additional Fees and some credit card issuers prohibit the purchase of cryptocurrency.”

In December 2021, the ASA flagged many encryption-related companies for violating advertising rules in their marketing activities.

December 15th, ASA tagged marketing campaigns from Coinbase, Kraken and eToro, Which includes misleading investment materials, and on December 22, Blaming Arsenal Football Club and blockchain company Chiliz In the issuance and follow-up promotion of the club’s fan token $AFC, “utilizing consumers’ lack of experience in encrypted assets”.

Earlier that month, members of the National Treasury Special Committee urged the FCA, the country’s general financial institution, to The cryptocurrency market should not be compared with traditional investment, And they may be used by criminals seeking money laundering.