The UK’s marketing watchdog Advertising Standards Authority (ASA) has effectively banned two advertisements by cryptocurrency platform Crypto.com as it looks to widen its crackdown on advertisements related to the nascent industry.
In a ruling published January 5, ASA ordered Crypto.com to remove two in-app ads, sharing five major concerns surrounding these advertisements. The ads in question include a 1 September 2021 ad (a) seen in The Daily App which read “Buy Bitcoin with credit card instantly.”
The other ad (b) was seen on 30 July 2021 in the Love Balls app, where Crypto.com promised that users can “Earn up to 3.5% p.a,” in crypto assets. However, the number in the text increased to 8.5% which could be misleading for traders who can assume their investments would grow by the latter number.
The watchdog explained that both Crypto.com ads “were misleading because they failed to illustrate the risk of the investment” as well as taking advantage of consumer inexperience and belief. It also criticized Crypto.com’s encouragement to purchase crypto assets by credit cards without warning about the risks of borrowing.
While the ad standards bureau did not fine Crypto.com, it warned that future ads should also explain that cryptocurrencies have the potential to decline as well. In response to the warning, Crypto.com told crypto news media Coindesk:
“We appreciate the collaborative dialogue and engagement from the ASA regarding advertising in the U.K. in this relatively new industry, and remain committed to working with them and regulators around the world to ensure all of our activities are compliant with the most recent regulatory guidelines.”