Crypto.com slapped with advert ban by UK watchdog
The UK’s advertising watchdog has banned two “misleading” ads by Crypto.com, as its campaign against digital assets continues.
The first advert appeared on the Daily Mail app in September and read “buy Bitcoin with credit card instantly” while the second appeared on the Love Ball app in July and told readers they could “earn up to 3.5 per cent per annum.” The number in the text increased to “8.5 per cent.”
In its ruling the Advertising Standards Agency accused Crypto.com of misleading the public by failing to communicate risk, irresponsibly taking advantage of investor inexperience and failing to convey how the 8.5 per cent figure was calculated.
“The fact that cryptocurrency was unregulated we considered to be material information that consumers required in order to make informed decisions about Crypto.com’s service, and should have been made clear in the ad,” the ASA said in a statement released today.
“Because neither the ads (a) and (b), nor the landing pages from them, included any risk warning making consumers aware that cryptocurrency could go down as well as up, or that the cryptocurrency was unregulated in the UK, we concluded that the ads were misleading,” the statement continued.
Crypto.com told City A.M. that the company is committed to “building a fully regulated industry is the best way to accelerate the world’s transition to cryptocurrency,” adding that “engaging regulators to ensure compliance and building trust remain Crypto.com’s highest priorities.”
“We appreciate the collaborative dialogue and engagement from the ASA regarding advertising in the UK in this relatively new industry, and remain committed to working with them and regulators around the world to ensure all of our activities are compliant with the most recent regulatory guidelines,” the spokesperson continued.
Crypto.com joins firms including Arsenal Football Club, Papa John’s and Coinbase who have received a slap on the wrist from the advertising watchdog in recent months.
The crypto platform has been pursuing a high profile marketing strategy as it seeks to catapult digital assets into the mainstream.
Crypto.com has announced it will join exchange FTX to run the first crypto adverts during the Super Bowl. It comes after the Singapore based crypto platform agreed a $700m 20-year-deal to give it naming rights of the Staples Center in Los Angeles.
Read more: Crypto.com and FTX to run first Super Bowl crypto ads