New guidelines from the British Advertising Standards Authority
In response to the content of past ads promoting cryptocurrencies, the UK’s Advertising Standards Authority has formulated new guidelines that service providers in the sector must follow.
UK companies providing services related to the cryptocurrency market have until May 2nd to check the content of their ads and possibly change them to comply with the new guidelines.
In an official notice, the UK’s Advertising Standards Authority (ASA) has urged more than 50 cryptocurrency companies to check how well their ads comply with the government’s announced regulations.
Among the recipients of the notice were the companies such as Coinbase (COIN), eToro, Luno, and Crypto.com.
The contents of new regulations
The ASA justified its decision to implement the new guidelines with advertisements’ unrealistic portrayal of cryptocurrencies. The regulator recently banned several ads from being released to the public due to their misleading nature.
Under the new directives, advertisers must include in their messages that cryptocurrencies are unregulated in the UK, and their rates are volatile, so the price value of BTC may fall.
Furthermore, advertisements should not suggest easy investment decisions or a “sense of urgency to buy”; they must not create fear of not taking advantage of an opportunity. It is also prohibited to tell consumers that investing in the digital asset market involves low risk.
Deadline: 2nd of May
Service providers operating in the cryptocurrency market have until the 2nd of May 2022 to review their ads and possibly change or withdraw them. Companies that fail to comply with the new directives will be investigated by the Financial Conduct Authority (FCA).
It is worth noting here that the FCA has been open about its plans to tighten oversight of the content of ads promoting cryptocurrencies back in January. Thanks to the government’s decision to expand the FCA’s powers, the regulator has gained the ability to exert more influence on the digital asset industry.
What do industry participants think about this? The CoinDesk website attempted to contact companies such as Coinbase, eToro, Luno, and Crypto.com for comment on the new ASA regulations, but to no avail.
FCA ordered the shutdown of bitcoin ATMs
The United Kingdom is becoming increasingly unfriendly towards the cryptocurrency market. The UK’s Financial Conduct Authority (FCA) recently issued an official order to shut down all bitcoin ATMs (machines that convert bitcoins into fiat currency) across the country. Failure to comply with the order could result in enforcement action. The FCA states that bitcoin ATMs should go through a special registration process before being used.