UK Watchdog Bans Crypto Ads—Claiming They Fail to Explain Digital Coin Investment's Risk! eToro and More Affected

UK Watchdog Bans Crypto Ads—Claiming They Fail to Explain Digital Coin Investment’s Risk! eToro and More Affected

15 December 2021

in XLM

Reading Time: 3 mins read

The U.K. advertising watchdog, the Advertising Standards Authority, decided to ban crypto ads because they failed to explain the risk of blockchain investment.

(Photo : Photo Illustration by Dan Kitwood/Getty Images)
In this photo illustration a visual representation of the digital currency Bitcoin sinks into water on August 15, 2018 in London, England. Most digital currencies including Bitcoin, (BTC) Ethereum, (ETH) Ripple (XRP) and Stella (XLM) have seen a dramatic fall in their prices throughout 2018 amid a ‘mass sell-off’. In December 2017 the price of BTC hit $20,000 USD but has since fallen to around $6000 USD.

Right now, many people across the globe are suddenly jumping in into the rising digital coin trends.

Seeing the increasing values of Bitcoin, Ethereum, and other giant cryptocurrencies, young investors are entering the world of the blockchain market, hoping they could also experience the success of these cryptos.

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Recently, TechTimes reported that Visa’s new crypto advisory initiative was rolled out. On the other hand, some crypto CEOs conducted a discussion about the digital coins in the United States last Dec. 8.

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These are just some things that various companies and crypto providers are doing to allow their consumers to understand more about blockchain. However, it seems like ASA does not see these efforts from the ads that it banned.

UK Watchdog Bans Misleading Crypto Ads

According to CNBC’s latest report, the Advertising Standards Authority decided to ban crypto ads from the country because it considers them misleading.

Also Read: Crypto Scam: Fake Instagram Accounts Used to Steal $80M from Victims-Here’s How to Protect Yourself

Most of these advertisements were released by popular crypto trading platforms and exchanges. These include Coinburp, Coinbase Europe, Luno Money, eToro, Papa John’s GB, Payward, and Exmo Exchange.

“The ads were addressed to a general audience and we considered that most of those who engaged in a promotion linked to buying pizza was likely to be inexperienced in their understanding of cryptocurrencies and the risks inherent in doing so,” explained the U.K. advertising watchdog.

The agency added that they only removed ads that didn’t contain any warning about blockchain investment risks. If you want to see more specific details about the banner ads, you can click this link.

Beware of Upcoming Crypto Ads

Of course, crypto ads would mainly focus on the good side of blockchain investment rather than its possible downs.

This is why it is important to research the digital coin you are eyeing on, especially since MUO reported that more cryptocurrency advertisements could arrive on Instagram and Facebook.