On March 22, the Advertising Standards Authority (ASA) of the United Kingdom issued an enforcement notice to over 50 firms that market cryptocurrency services. The enforcement notice directed the firms to review their adverts and ensure compliance with new regulations.
According to the guidelines, all advertisements should explicitly state that crypto assets are unregulated in the United Kingdom, that earnings may be subject to Capital Gains Tax, and that the value of crypto investments is highly volatile. Adverts in newspapers and magazines, on television, in emails, on outdoor billboards, in sponsored social media posts, and through paid partnerships with influencers all fall under this category.
The guidelines quote the following-:
- Advertisers should clearly state that cryptocurrencies are unregulated in the U.K. and that the values of investments are variable and can go down.
- Advertisers must not state or imply that investment decisions are trivial, simple, easy, or suitable for anyone
- Advertisers must not imply a sense of urgency to buy or create a fear of missing out, or that investments are ‘low risk’
According to the ASA, all commercials that air between now and May 2 will be examined for compliance, and the compliance team will conduct follow-up monitoring. If the advertisements do not meet the criteria, they will be subject to targeted enforcement action. This includes reporting non-compliant advertising to the Financial Conduct Authority (FCA) and Trading Standards, which have the authority to prosecute, penalize, and ultimately prohibit organizations from trading.
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