UK Watchdog Clamps Down on Crypto Firms for ‘Misleading’ Advertisements

More than 50 cryptocurrency companies have been put on notice for “misleading” and “irresponsible” advertisements

article-image

Crypto roadside advertisement | Source: Shutterstock

share

key takeaways

  • The UK Advertising Standards Authority previously scrutinized ads from Coinbase
  • Agencies in Spain and Singapore have also warned firms for promotions

A UK regulator sent over 50 crypto companies enforcement notices to review their advertisements – joining a growing list of countries cracking down on promotions in the nascent space.

On Tuesday, the UK Advertising Standards Authority (ASA) threatened firms with targeted sanctions if “problem ads” continue after May 2.

“This is a ‘red alert’ priority issue for us and we’ve recently banned several crypto ads for misleading consumers and for being socially irresponsible,” the watchdog said in a statement.

The ASA said companies should not call investing in cryptocurrencies “trivial” or “suitable for anyone.” Additionally, they can’t create a “fear of missing out” on investments in the digital asset class.

The advertising watchdog did not publicly name the companies it had contacted. ASA, however, said they had previously banned Coinbase and Papa John’s ads.

An estimated 2.3 million UK consumers are holding crypto, according to a June FCA report

Susannah Streeter, a senior investment analyst at British financial services company Hargreaves Lansdown, told Blockworks the ASA could only censure firms after the ads are out.

“The rollercoaster ride is set to continue, given that crypto assets are also highly sensitive to the fortunes of the stock market and were propelled higher in an era of ultra-cheap money,” Streeter said in an email. “As speculation swirls about how rapidly central banks will tighten mass bond buying programmes and start raising interest rates, given soaring inflation, they are likely to stay volatile.”

Last year, the ASA investigated Arsenal Football Club for promoting crypto tokens to fans because it “failed to illustrate the risk of the investment.”

ASA’s enforcement notices follow rules outlined by Spain’s national securities market commission on Jan. 17. The agency’s new circular aims to ensure “advertising of the products offers true, understandable and non-misleading content and includes a prominent warning of the associated risks” of crypto.

The Monetary Authority of Singapore, meanwhile, on Jan. 18 urged digital payment tokens providers to not play down crypto risks. Regulated providers, including banks and financial institutions, are now barred from promoting their services except via their own social media, websites or mobile apps.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

kamino cover.jpg

Research

Kamino has solidified its position as the leading money market on Solana and is emerging as a DeFi bluechip. Although DeFi competition is fierce, Kamino has kept iterating on its product to provide the best-in-class UX, paired with a robust risk management framework and battle-tested infrastructure. Given the rollout of Kamino Lend V2, the protocol may scale aggressively over the coming months, penetrating previously untapped markets in Solana DeFi.

article-image

Why that the bull market might not start until 2025

article-image

August’s annual headline figure came in at 2.3% after an upward revision Thursday, so things are moving in the right direction 

article-image

MSTR’s stock price was roughly $248 at 2 pm ET Thursday

article-image

Ever since rates came off zero and fiscal deficits exploded, markets have started paying close attention to how the government is funding itself

article-image

Solana memecoins are collectively at an all-time high

article-image

Optimistic rollups like Optimism, Arbitrum and Base are seeing rapid adoption relative to zk rollups