UK Advertising Watchdog Tightens Ads On Crypto Money, Like Cigarettes Danger Warning Must Come

Cryptocurrency advertising in the UK is getting tougher. (photo: doc. pixabay)

JAKARTA - The UK's advertising watchdog on Tuesday, 22 March, has stepped up its scrutiny of cryptocurrency advertising. They ordered more than 50 companies in the industry to tell consumers that digital assets are unregulated and unstable, in their advertisements.

Cryptocurrencies have surged in popularity during the COVID-19 pandemic, with retail and institutional investors alike flocking to this digital asset. However, bitcoin and other tokens are largely unregulated and unprotected in the UK.

Advertising for digital assets, from cryptocurrencies to non-exchangeable tokens, has become commonplace in the UK on public transport and at sporting events.

The Advertising Standards Authority (ASA) said the ad must now not state or imply that deciding to invest in cryptocurrency is "trivial, simple, easy, or suitable for anyone." This application is similar to warnings in cigarette advertisements.

Nor should they create "fear of missing the trend" or that investments are "low risk", the watchdog said, as quoted by Reuters.

The ASA said its rules apply to the advertising of crypto tokens such as bitcoin, exchanges that merchants use to buy and sell tokens, and other related promotions aimed at British consumers.

"We are concerned that people may be tempted by advertising into investing money they cannot afford to lose, without understanding the risks," Advertising Standards Authority Chief Executive Guy Parker said in a statement.

Supervisors will monitor ads and take enforcement action on ads deemed to violate these rules after 2 May.

The move comes as the UK financial watchdog plans to curb the marketing of crypto assets amid an explosion of advertising and celebrity endorsements for these assets.

Other European regulators have moved to tighten restrictions on cryptocurrency advertising. Such a campaign in Spain, for example, would require authorization from the stock market watchdog, as of last January.