Over 50 companies that have marketed cryptocurrency services in the United Kingdom (UK) have received an enforcement notice from the Advertising Standards Authority (ASA), instructing them to assess their adverts to ensure they comply with new instructions.
The companies mentioned are the ones that appear to have pushed cryptocurrency ahead of a planned crackdown in the country on deceptive and irresponsible crypto advertisements, according to reports.
The notice, according to the Advertising Standards Authority, is intended to act as a caution to firms to examine and tidy up their adverts over the following two months, after which more stringent measures to punish rule-breakers would be implemented.
Crypto advertisements, that have risen as digital assets along with gaining widespread appeal, have been targeted by regulators around the world. Earlier this year, governments and watchdogs in the UK, Singapore, and Spain pledged to stiffen regulations on crypto advertisements. These rigorous guidelines also limit such promotions to just rich investors, though the United Kingdom has yet to establish a deadline for enacting that reform into law.
Guidelines of UK’s advertisement enforcement notice
All promotions should clearly and prominently state that cryptoassets are unregulated in the United Kingdom, that any profits may be subject to Capital Gains Tax, and that the value of crypto investments can go down as well as up, according to the ASA’s enforcement notice, which was issued on Tuesday. Advertisements in newspapers and magazines, on television, in emails, on outdoor posters, in boosted social media postings, and through paid agreements with influencers are all inclusive of this.
The ASA said that all commercials airing between now and May 2 will be checked for compliance, with “targeted enforcement action” taken if problems remain after that date. Furthermore, repeat offenders will be reported to the Financial Conduct Authority as well as Trading Standards, which has the authority to prosecute, penalise, and eventually stop businesses from trading.
The ASA refused to name any of the companies that got the enforcement notice but alluded to recent ASA judgments against crypto ad companies in the United Kingdom. Coinbase Europe Ltd, Arsenal Football Club, eToro’s UK subsidiary, and Floki Ltd., which launched adverts in favour of the parody cryptocurrency Floki Inu, are among the companies involved.