Binance News: The UK watchdog, the Advertising Standards Authority (ASA), has announced that it will take drastic action against deceptive crypto ads across the country. The ASA said that most crypto advertisements are misleading and do not give any warnings to people. The foreseeable measures will begin with the removal of obscure advertisements from social media platforms.
Miles Lockwood, director of complaints and investigations at the ASA, told the Financial Times his restrictions would be “hard and swift” if there were breaches.
Mike Lockwood has described cryptocurrency as a “urgent” priority as it could pose a threat to less informed and vulnerable audiences of economic and commercial advertisements. He said the ASA would notify crypto businesses, after which the digital currency industry would have to add a disclaimer to their otherwise misleading advertisements.
Lockwood told the Financial Times:
We see this as a critical and priority area for us… We intervene hard and fast where we find problems.
Research and closure begins in UK
The Financial Conduct Authority (FCA) has made announcements to protect the public from falling for deceptive crypto advertisements that could lead them to make an uncalculated decision. The FCA warned consumers not to buy trending crypto products and said consumers “must be prepared to lose all their money”. However, the FCA had not been very successful in disseminating its warnings.
Two months ago, ASA condemned a crypto ad placed on UK subway walls by a subsidiary of cryptocurrency exchange Luno and Barry Silbert’s Digital Currency Group. The ad was allegedly “misleading” as it did not contain any warnings or disclaimers. The slogan was “If you see Bitcoin in the tube, it’s time to buy”.
Without a disclaimer, the ad encourages people to buy the extremely expensive Bitcoin without informing about the volatile nature of the currency.
The UK’s imminent measures will not only remove deceptive and suspicious ads, but ASA has also ensured that it will start cleaning offline and online ads by appointing a research unit.