The regulator clarified that none of the advertisements warned the public about the risks inherent in cryptocurrencies, nor that such assets were unregulated in the UK.
La UK Advertising Standards Authority (ASA) banned two advertisements associated with exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. Crypto.com, which he described as misleading and potentially harmful to the residents concerned.
The respective prohibition was upheld following a ruling issued by the ASA today, as these ads came into force in mid-2021 but were withdrawn after certain irregularities present in them. It is worth noting that one of them appeared in the local press, while the other was disseminated through an app for mobile devices available at iTunes App Store.
The signals from the ASA
While already talking about advertisements for cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. trading may be somewhat controversial in the UK, the problems associated with cryptocurrency advertisements have been Crypto.com are directly related to the invitations and/or commercial proposals mentioned therein.
One of the ads alluded to instant credit card purchases, while the other offered annual gains gains refer to an increase in value or profit. of between 3.5% and 8.5%. In both cases, the ASA pointed to Crypto.com not to mention the risks associated with this type of investment, in addition to the fact that it did not explain in a coherent way how the percentages of return mentioned therein were sustained.
In the face of controversy and accusations, Crypto.com proceeded to voluntarily withdraw the respective advertisements. However, the ASA continued to express its dissatisfaction with what had happened, pointing out that none of these advertisements included considerations about the associated risks, nor did they indicate that cryptocurrencies were products “unregulated”. in the UK.
A complicated panorama
While Crypto.com has been particularly notable in recent months for its aggressive advertising and deal making, the landscape in the UK is particularly challenging at the moment when it comes to digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currencies.
Recently, British MP Richard Holden, backed a growing group of critics who demanded the local government to take a more critical and strict stance on digital currencies, especially in the absence of clear legal frameworks and regulations applicable to projects that venture into this space:
“This is the Wild West, it’s a grey area between highly leveraged financial investments on the one hand and these other products that could be considered gambling… There needs to be a clear differentiation there, precisely to protect people.”
Both the ASA as the FCA have had issues throughout 2021 with crypto issues:
- Regarding the FCA, highlights the dispute that it has maintained against Binance, which it points out for not having a local headquarters due to irregularities in its business model in the United Kingdom. This led to difficulties such as closing business lines, blocking payments and other services.
- MPs and critics call on UK government to take tougher approach to digital currencies
- UK regulator complained about two Arsenal Football Club fan token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. adverts
- UK bans 7 crypto ads from Papa John’s, Coinbase, Etoro, Luno, Kraken and other companies
Source: Decrypt , archive
Version by Angel Di Matteo / DiarioBitcoin
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