UK’s Advertising Standards Authority to tighten control over cryptocurrency advertising
The Advertising Standards Authority (ASA), which is the organization that supervises the advertising industry in the United Kingdom of Great Britain and Northern Ireland (UK), has recently announced that it will tighten the rules for advertising crypto-assets. The regulatory organization will begin to fight cryptocurrency investment marketing, which, in their opinion, misleads users.
The authority emphasized that it will make serious efforts to protect consumers trading in unregulated digital assets. For this purpose, the Advertising Standards Authority will begin to monitor social media and other platforms in active search for dishonest marketing.
Miles Lockwood, Director of Complaints and Investigations, said that, as a top priority, ASA is committed to finding and solving advertising-related problems. According to the director, the supervisory organization has assigned the highest “red hazard level” to the advertising of cryptocurrency assets. In addition, companies will have to start issuing warnings and including disclaimers in their ads.
The tightening of control over cryptocurrency advertising followed a warning from the UK’s Financial Conduct Authority (FCA) about the dangers and risks of investing in digital assets in which there is a probability of losing all the money. The regulator stressed that many companies offering such services operate in the country without licenses. As a result, investors who have suffered losses cannot file a complaint with the Financial Ombudsman to compensate for the loss.