The Advertising Standards Authority (ASA), the self-regulatory organization of the advertising industry in the United Kingdom, has sent an “Enforcement Notice” to over 50 companies that promote digital assets, asking them to review their ads.
The notice mandates crypto companies to comply with the regulator’s guidance, warning that a failure to do so could push the agency to “implement sanctions” on the firms.
More specifically, the ASA’s guidance requires advertisers to clearly state that digital assets are not regulated in the UK and that they are subject to extreme volatility.
Moreover, the advertisements should not suggest that investment decisions are suitable for anyone, easy or trivial, nor should they evoke fear of missing out (FOMO) and a sense of urgency.
“We’re concerned that people might be enticed by advertisements right into spending cash they can’t afford to shed, without understanding the risks,” Guy Parker, the ASA’s Chief Executive, was priced estimate as claiming.
“Working along with the FCA, we’ll take solid action against any type of advertiser who fails to ensure that their advertisements are accountable.
“The notification is aimed at all promotions and promos related to crypto exchanges, electronic assets, or ads that entail the transfer, sale, or supply of crypto possessions, according to the watchdog.
The ASA included that they are functioning along with the economic regulative body, the Financial Conduct Authority (FCA).
And will take action against those that stop working to follow the rules. The company likewise exposed that it would certainly carry out follow-up tracking.
As well as would take “enforcement action” if issue ads continue past May 2.
“People should be wary of any promotion promising high investment returns and do further research before investing, including through the FCA’s InvestSmart website,” said Sarah Pritchard, the FCA’s Executive Director for Markets. “Crypto assets remain unregulated and those who invest in them should be prepared to lose all their money.”
Throughout 2021, UK’s watchdogs clamped down on a number of crypto ads that were perceived as “misleading.” And just earlier this month, the ASA banned an advertising campaign launched by the floki inu (FLK) project, which was considered to evoke fear of missing out.
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