The Advertising Standards Authority (ASA), an entity that oversees ads in the United Kingdom, released Monday (21) performance information With “Red Alert” for over 50 cryptocurrency companies. According to the document, this is a new set of guidelines for companies to comply with the new advertising rules till May 2, when the instructions will come into force.
The guidelines aim to protect consumers from FOMO (fear of missing out) or predatory marketing tactics.
In particular, the institution calls on advertisers to explicitly state that cryptocurrencies in the UK are unregulated, that prices are volatile, investments are high-risk and profits from them “may be subject to capital gains tax.”
hey Announcement states that the ASA will work with the Financial Conduct Authority (or FCA) – the UK’s leading financial regulator – to take action against companies that do not comply with the new regulations (as notified by the ASA). coindesk50 are part of the list, which includes all companies that are already subject to decisions by the body, such as Coinbase (COIN), eToro, Luno and crypto.com).
The FCA “worked” with the advertising supervisor to “distribute the enforcement notice”.
Crypto Authority in the UK
Crypto companies have come under scrutiny in recent discussions of fair advertising around the world.
In the UK, things have been heating up since early January, when the ASA banned two ads from CryptoKitties.com, claiming it failed to explain the risks of cryptocurrency trading.
Two weeks later, the British government introduced new legislation to protect customers from deceptive cryptocurrency ads. The law requires all crypto ads in the UK to be approved by the FCA or the Prudent Regulatory Authority (or PRA).
This month, the ASA called “Buy Floki from the Lost Doge? meme cryptocurrency” miniaturized crypto trading and “exploited” the consumer experience and lack of FOMO.
*Translated and edited by Daniela Pereira do Nascimento. with the permission of decrypt.co,