UK bans Coinbase ads that ‘trivialized’ crypto risks: Report

The UK’s advertising regulatory body, the Advertising Standards Authority (ASA), has banned two promotional advertisements run by the cryptocurrency exchange Coinbase for failing to adequately inform consumers about the significant risks associated with investing in digital assets.

The ASA deemed the advertisements misleading and irresponsible, concluding that they trivialized the potential for financial loss by not providing clear and prominent risk warnings.

One of the banned ads, a paid-for Facebook and Instagram promotion run in 2021, offered users a chance to win Bitcoin through a prize draw. The regulator stated that the ad capitalized on the ‘fear of missing out’ (FOMO) and that the warnings provided were not sufficiently prominent. The ASA ruled that the ad failed to make the inherent volatility and risk of crypto investing clear.

The second promotion was a paid-for Twitter post that emphasized the speed and simplicity of purchasing cryptocurrency, encouraging users to sign up in ‘less than 10 minutes.’ The ASA criticized this ad for minimizing the seriousness of trading highly volatile assets, thereby violating rules regarding responsible advertising and financial promotions.

Following the ruling, Coinbase has been ordered to ensure that all future promotions clearly and prominently display warnings stating that cryptocurrency is unregulated in the UK, highly volatile, and that investors could lose their entire capital. This action is part of a wider crackdown by UK financial authorities aimed at protecting retail investors from misleading crypto marketing.

Source: UK bans Coinbase ads that ‘trivialized’ crypto risks: Report