Six cryptocurrency businesses, as well as the pizza brand Papa John’s, have been banned by the Advertising Standards Authority (ASA) for “taking advantage of customers’ ignorance” of digital currencies. Coinbase, CoinBurp, Payward, and Exmo Exchange are among the crypto companies that have been slammed for not attempting to “illustrate the danger of investment” in cryptocurrencies by the authorities.
There has been a lot of criticism of Papa John’s for promoting their partnership with cryptocurrency exchange Luno. With their “£15 off when you spend £30” Twitter promotion offering “Free Bitcoin worth £10,” Papa John’s advertised and offered “Free Bitcoin worth £10” with every pizza purchase. After all, even if Luno did not try to persuade investors, customers had to register themselves in order to participate in the promotion.
When it came to cryptocurrency and the dangers that go along with it, customers who participated in an ASA campaign related to pizza purchases were more likely to be ignorant. The regulator also pointed out that the adverts did not include any cautions about the dangers of bitcoin trading.
And Coinbase was penalized for its false claim that “£5 of #Bitcoin in 2010 will be valued over £100,000 by January 2021,” which appeared on the social media platform Facebook. Sign up for Coinbase immediately, so you don’t miss out on the next decade.” The ad further claimed that the cryptocurrency was “easy and straightforward to use,” “never hacked,” and “stable.”
Advertising Standards Authority (ASA), on the other hand, found that the commercial did not adequately warn consumers about the possibility of cryptocurrency prices rising or falling. Because bitcoin is currently unregulated in the UK, the advertising was ruled misleading by the ASA. Cryptocurrencies are now a “red alert” priority for the regulator, and subsequent judgments will affect enforcement activities in the coming weeks, Miles Lockwood said.
Adverts for non-fungible currencies will also be examined by the organization as it expands its scope to include crypto ads (NFTs). When it comes to cryptocurrency investments, “consumers need to know what they’re getting into,” says Lockwood. “Corporations should guarantee that their marketing aren’t misleading or socially irresponsible.”
If an advertisement violates our policies, we won’t hesitate to take action. In the event that somebody has a problem with an ad they’ve seen, please contact us.” Authorities have warned that these items might soon lose value, but an estimated 2.3 million people in the United Kingdom have them. We have noticed an increase in the value of crypto wallets from £260 to £300, according to the Financial Conduct Authority (FCA).
According to a Twitter profile for cryptocurrency trading site Coinburp, “Register in minutes, deposit instantly, and then execute super-easy and safe crypto transactions.” According to the ASA’s verdict, consumers would perceive the claim to mean that investing in bitcoin was easy, and the ad didn’t make it clear that cryptocurrency is uncontrolled.