One week after UK regulators censored a football club for what it described as irresponsible crypto ads, the country’s marketing watchdog has banned two ads from Crypto.com, according to a decision on Wednesday (January 5).
The Advertising Standards Authority (ASA) has followed up on complaints about an advertisement that appeared in the Daily Mail app on September 1 last year that included the slogan, “Buy Bitcoin with Credit Card Immediately”.
The other, seen on the Love Balls app on July 30, pledged “up to 3.5% per annum” (annually). But the figure mentioned in the text rose to 8.5%. Love Balls is a mobile by Lion Studios in which players must draw on the screen to make two different balls move towards each other and finally touch each other.
In its decisions to ban ads, the ASA said online promotions “reduced investment in crypto assets.”
“We understood that consumers would interpret the claim ‘earn up to 3.5% per year’ which increased to ‘earn up to 8.5% per year’ to mean that any deposit could increase by the highest amount offered,” the ASA said.
The regulator added that the ads failed to reveal investment risks, were irresponsible, and took advantage of consumers’ inexperience.
The ASA also noted its objection to the implication that consumers should buy cryptocurrencies on credit without any warning of the risks of going into debt.
In response, Crypto.com told the ASA that the ads were promptly removed as soon as the company became aware of the agency’s concerns. The company said it has strengthened operational oversight of advertising in the UK and is drafting a new UK marketing policy that includes the Financial Conduct Authority (FCA) treating clients fairly with client outcomes. The FCA regulates the financial services industry in the UK and the companies in which it operates.
This is the latest ban by the ASA on crypto ads it considers misleading.
Last month, PYMNTS reported that Arsenal Football Club was summoned by the ASA for what regulators called irresponsible advertising of fan tokens related to cryptocurrency. At the time, the ASA said that online promotions “reduced investment in crypto assets.”