The UK’s Advertising Standards Authority (ASA) has banned several advertisements from cryptocurrency exchange Coinbase UK, ruling that they irresponsibly exploited consumers’ financial anxieties during the ongoing cost-of-living crisis. The ruling is part of the regulator’s sustained effort to crack down on misleading and risky cryptocurrency promotions.
The advertisements in question, which appeared online and in print, targeted consumers by suggesting that investing small amounts of money in crypto could offer relief from rising inflation and soaring household bills. The messaging often leveraged general public concerns regarding economic instability to encourage immediate investment.
In its formal ruling, the ASA determined that by directly linking cryptocurrency investment to solving immediate financial hardship, Coinbase breached rules requiring financial advertisements to be socially responsible and not mislead consumers regarding risk. The regulator emphasized that crypto assets are highly volatile and inherently risky, making them unsuitable for individuals struggling financially who might be tempted to invest money they cannot afford to lose in search of quick returns.
This decision marks another instance of the ASA taking action against major crypto platforms for inadequate risk disclosure, particularly when appealing to economically vulnerable groups. The ruling requires Coinbase to immediately cease running the offending campaigns and mandates that future advertisements must prominently and explicitly detail the potential for loss, avoiding any messaging that minimizes the risks or implies that crypto can serve as a quick fix for the current economic pressures faced by UK households.
Source: UK Regulator Bans Coinbase Ads Over Cost-of-Living Messaging
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