The Advertising Standards Association (ASA) has said it will take action against misleading cryptocurrency advertising.
In Brief:
The ASA says monitoring the campaigns of unregulated crypto trading platforms will be a key priority.
It has pointed to failures to warn customers that cryptocurrencies have no consumer protections.
It will also be focusing on social media accounts that encourage crypto investment without declaring risks.
What does this mean?
The “crackdown” has been sparked by a now infamous campaign by crypto exchange Luno which included posters staring “if you’re seeing bitcoin on the underground, it’s time to buy” - and not much else. The campaign has had to be replaced to include a risk warning. There’s also been an uptick in FinTechs working with social media influencers to advertise their products, which is slightly newer territory for the ASA and comes with its own risks.
