British advertiser ASA continues to vigorously ban encrypted advertising

The British Advertising Standards Agency (ASA) has approved the formal ban on two mobile application advertisements from the popular trading platform Crypto.com. These advertisements promote the convenience of buying cryptocurrencies such as Bitcoin and obtain revenue rewards through digital assets.

ASA is notorious in the industry for its strict legislation on the proposed impact of cryptocurrency advertising, marking marketing materials as violating many financial regulatory rules, including failure to effectively explain the potential risks of investment, abuse of consumers, lack of market understanding, and not Specify restrictions on the use of credit cards to purchase cryptocurrency.

Once the question was raised, Crypto.com voluntarily deleted the ad, but debated the nuances of the ad with regulators, pointing out that the intention of the first ad (released on the Love Ball app on July 30, 2021) was Users can “earn up to 8.5% annual interest rate through income investment rather than specific encrypted assets.

Similarly, according to Crypto.com’s written response, an advertisement subsequently published in the Daily Mail newspaper application on September 1 was intended to show the fast process of purchasing crypto assets on its platform-“Buy immediately with a credit card Bitcoin”—as opposed to directly advising consumers to engage in trading activities.

related: UK advertising regulator bans crypto ads from Coinbase and Kraken

Crypto.com’s marketing attempts in the United States have pushed its brand awareness to mainstream audiences.This Matt Damon TV Commercial, Purchased a 20-year lease worth 700 million U.S. dollars and obtained the naming rights for the historic Staples Center, Now called Crypto.com Arena, And the launch of irreplaceable tokens or NFTs, Cooperation with UFC, Have expanded the ambitions of the platform.

Cointelegraph spoke with a representative of Crypto.com to discuss the prerequisites that its guarantee will “surpass” the regulator’s financial compliance issues, noting:

“We believe that establishing a fully regulated industry is the best way to accelerate the world’s transition to cryptocurrency, and this has always been our mission. Working with regulators to ensure compliance and build trust remains the top priority of Crypto.com. “

At the end of the evaluation, the ASA recommended that Crypto.com, in the future, such marketing materials must “fully demonstrate that the value of cryptocurrency investments is variable, can rise or fall, and that cryptocurrencies are not regulated.”

In addition, the material will not “irresponsibly exploit the lack of experience or credibility of consumers, irresponsibly encourage the use of credit cards to invest in cryptocurrency”, and “use of credit cards may be subject to higher interest rates, additional fees, and some Credit card issuers are prohibited from buying cryptocurrency.”

In our later discussion, Crypto.com outlined their intention to work with the ASA guidelines and policies when creating and proposing new marketing campaigns for UK audiences, noting:

“We are grateful to ASA for its dialogue and participation in UK advertising in this relatively new industry, and we continue to work with them and regulators around the world to ensure that all our activities comply with the latest regulatory guidelines.”