The U.K.’s advertising authority has sent an enforcement notice to more than 50 companies that advertise cryptocurrencies. “We will monitor for compliance and implement sanctions if we do not see improvements,” said the regulator.
British Advertising Regulator’s ‘Red Alert’ Priority Issue
The U.K. Advertising Standards Authority (ASA), the country’s regulator of advertising, proclaimed Tuesday:
We have issued an enforcement notice to over 50 companies which advertise cryptocurrencies, instructing them to review their ads and to ensure they understand and are complying with the rules so that consumers are treated fairly.
“The enforcement notice provides guidance to the crypto trade on the way to stick with the principles and warns that we will monitor for compliance and implement sanctions if we tend to don't see improvements,” the ASA added.
“The notice applies to ads for cryptocurrencies, crypto exchanges and ads or promotions that otherwise involve the transfer, sale or provide of cryptocurrencies, targeted at United Kingdom customers or that are targeted globally on behalf of UK-based advertisers,” the watchdog elaborate.
The ASA explained that advertisers should clearly state that cryptocurrencies are unregulated within the U.K. and the worth of crypto investments may go down. additionally, they have to not state or imply that crypto investment decisions are “trivial, simple, simple or suitable for anyone.” Ads should conjointly not imply a way of urgency to shop for or produce a concern of missing out (FOMO), or imply that investments are low-risk.
( Kevin Helms, Bitcoin.com, 2022 )