Accused Of Making Misleading Ads, ASA Shuts Down Ads Of A Number Of Crypto Exchange Platforms

Misleading crypto ads had to be shut down by the ASA. (photo: doc. pixabay)

JAKARTA - The Advertising Standards Authority (ASA), the UK's independent advertising regulator, has recently removed a number of cryptocurrency-related ad campaigns promoting several large industrial companies.

On December 15, the advertising watchdog issued several decisions regarding advertising violations involving six crypto-related companies including Coinbase, Kraken, eToro, Exmo, crypto broker Coinburp and crypto exchange Luno. The ASA also issued a similar decision for pizza chain Papa John's.

The seven advertisements or promotions were banned for "irresponsibly taking advantage of inexperienced consumers and for failing to portray the risk of investment," the ruling was quoted as saying by Cointelegraph.

The ASA argues that Coinbase's European branch specifically issued a "misleading" promotion on its paid Facebook ads in July 2021, including text stating "five pounds in Bitcoin in 2010 will be worth more than 100,000 pounds in January 2021."

According to the advertising regulator, the ad "implies there will be a guaranteed similar increase in Bitcoin's value over the next decade." Coinbase Europe also “did not make it clear that past performance is not necessarily a guide for the future,” the ASA noted.

Another ASA ruling is against operator Kraken Payward, related to a digital poster for Kraken seen in August 2021 at a London Bridge station. The watchdog argued that the ad did not have a proper risk warning because the risk disclaimer was only shown "for one second."

"The risk alert only runs for one second at the start of a 20-second ad and we consider it to provide consumers with a large amount of information that will not be fully read or understood even if viewed at all," the decision reads.

The latest regulatory move by the ASA joins a number of similar decisions made earlier this year as UK authorities have been actively hunting down and closing misleading crypto advertisements.

In May, the ASA removed another advertising campaign by the Luno exchange. The advert was shown across the London Underground network and on London buses this year, with posters including an image of Bitcoin saying: “If you see bitcoin on the Underground, it's time to buy.” The regulator previously also banned advertising campaigns by the Coinfloor exchange.