UK’s Advertising Standards Authority Bans Two Crypto.com Ads

UK’s advertising standards authority banned two ads by Crypto.com which came under fire for their advertisements days after their Matt Damon commercial became popular so let’s read more today in our latest cryptocurrency news.

The UK’s advertising standards authority banned two ads belonging to crypto exchange Crypto.com and the first one appeared in September 2021 that appeared on the Daily Mail app which said: “Buy bitcoin with credit card instantly.” The second ad appeared in the Love Balls App which is a mobile game available on the iTunes App Store and the app initially said users can earn up to 3.5% per year in crypto but the number increased to 8.5%. The ASA had five concerns and challenged Forisgfs UK LTD trading as Crypto.com on five grounds. The term trading is referred to when the company trades under a name other than it registered the company name.

The concerns included that the ads were misleading because they failed to show the risks of the investmetns and the ads were irresponsible and took advantage of the consumers’ inexperience while the Daily Mail ad was misleading because it failed to make limitations to buy crypto with a credit card with the claim “earn up to 8.5%” was also misleading. Forisgfs UK said that the ads have been removed voluntarily after the company learned of the ASA concerns. Crypto.com said that the first AD only advertised the speed with which the users can buy crypto on the exchange saying that it was not specifically an ad for crypto.

Regarding the second ad, Crypto.com said that It referred to offers for existing crypto users and it was not advertising crypto itself. The ASA disagreed contending that both ads included risk warnings that could make consumers aware that crypto could lose and gain more value. What’s more to it, neither AD made clear that crypto was unregulated in the UK:

“We concluded that the ads were misleading.”

The news came a few days after the latest ad by Crypto.com featuring Matt Damon reached the mainstream and resulted in a much positive reaction on social media. However according to one Guardian journalist Carole Cadwalladr:

“There isn’t enough yuck in the world to describe Matt Damon advertising a Ponzi scheme.”

Computer programmer Stephen Diehl continued:

“I just can’t get over the unfiltered nihilism that suggests that investing in dog coins is like the moon landing.”

Today’s warning is the latest in a long line of actions that were taken by the ASA against crypto ads which up to this day involved companies like eToro, Coinbase, Papa Johns, and even Arsenal FC. The ASA spokesperson said:

“We appreciate the collaborative dialogue and engagement from the ASA regarding advertising in the UK in this relatively new industry, and remain committed to working with them and regulators around the world to ensure all of our activities are compliant with the most recent regulatory guidelines.”