The UK Advertising Standards Authority, or ASA, has ruled to officially ban two mobile app ads from the popular Crypto.com trading platform, which promoted the ease of buying cryptocurrencies like Bitcoin, as well as earning performance rewards on digital assets.
Gaining notoriety within the industry for its strict legislation on the proposed implications of a cryptocurrency announcement, the ASA flagged marketing material for violating a number of financial oversight rules, including effectively failing to disclose potential investment risk, abusing it. of the lack of understanding of the market by the consumer. , in addition to not specifying the limitations of buying cryptocurrencies with credit cards.
Crypto.com voluntarily removed the ad once the concern was raised, but discussed the nuances of the announcements with the regulator, stating that the intent of the inaugural announcement, posted on the Love Ball app on July 30, 2021, was that users could "earn up to 8.5% pa," he hinted through investment returns, not specific crypto assets.
Similarly, according to Crypto.com's written response, the subsequent announcement, posted on the Daily Mail newspaper app on September 1, was intended to showcase the rapid process of buying crypto assets on their platform: " Buy Bitcoin with a credit card instantly ", as opposed to directly advising consumers to engage in commercial activities.
Related: UK Advertising Watchdog Bans Crypto Ads For Coinbase And Kraken
Crypto.com's marketing forays into the United States have driven recognition of its brand to a general audience. The Matt Damon TV commercial, the purchase of a twenty-year lease for $ 700 million for the naming rights of the Historic Staples Center now known as Crypto.com Arenaas well as the launch Non-fungible or NFT tokens in association with UFC, have broadened the platform's ambitions.
In concluding its assessment, the ASA advised Crypto.com that future marketing material of this type must be made "sufficiently clear that the value of cryptocurrency investments was variable and could go up or down and that crypto was unregulated."
Along with this, that the material does not "irresponsibly take advantage of the lack of experience or credulity of consumers by irresponsibly encouraging investment in cryptocurrencies using a credit card", as well as that "the use of a credit card could be subject at higher interest rates, extra fees and that some credit card issuers prohibit the purchase of cryptocurrencies. "
In the month of December 2021, the ASA singled out several crypto-related companies for violating advertising rules in their marketing campaigns.
On December 15, the Marketing campaigns marked by ASA from Coinbase, Kraken and eToro, among others for misleading investment material, while on December 22, accused Arsenal FC and blockchain firm Chiliz of "taking advantage of the inexperience of consumers in crypto assets" in the issuance and subsequent promotion of the club's fan token, $ AFC.
Earlier that month, members of Parliament, or deputies, on the treasury selection committee implored the nation's global finance body, the FCA, that investments within the The cryptocurrency market should not be compared to traditional investments., and that could be used by criminals looking to launder money.
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