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Crypto Weekly
UK's Advertising Watchdog Bans two Crypto.com Promotions for Being Misleading and Irresponsible
Two Crypto.com promos have been banned by the UK's advertising watchdog because they misled consumers.
These were considered irresponsible and exploited consumers' inexperience or credulity, according to the regulator.
Crypto.com responded to each claim and stated that the ads had been "voluntarily removed" after learning of the regulator's concerns.
Two Crypto.com promotions were banned by the UK's advertising watchdog Wednesday for misleading consumers. First, an ad appeared in September 2021 in the Daily Mail app that said: "Buy Bitcoin instantly with a credit card." The second ad appeared in July 2021 in the Love Balls app and stated: "Earn up to 3.5% p.a.," although the fine print said 8.5%. Both ads were deemed misleading by the Advertising Standards Authority
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because they failed to illustrate the risks of investment, and irresponsible as they exploited consumers' inexperience and credulity. The regulator also noted that the first ad failed to mention that purchasing crypto with credit cards has certain limitations.
at which users could buy crypto. Regarding the second ad, Crypto. com said it was referring to the yield crypto holders can generate, not the crypto itself. The risks associated with investing in crypto are well known to existing customers.
Similarly, the second ad failed to elaborate on the method for calculating the earnings forecast, the ASA said. Crypto.com responded to the ASA and said the ads had been "voluntarily removed" after learning of the regulator's concerns. A representative of Crypto.com said, "We thank the Advertising Standards Authority for its collaborative dialogue and engaged participation regarding advertising in the UK in this relatively new industry, and we look forward to continuing to be in compliance with regulatory authorities around the world."
Cryptocurrencies soared to a $3 trillion industry at one point in 2021 as governments around the world stepped up their enforcement. ASA banned ads for soccer club Arsenal's fan token in December, calling the ads "irresponsible" for not highlighting the risks associated with crypto. Six crypto-related firms, including Coinbase, Kraken, and eToro, were also challenged on December 15 for alleged advertising violations.
The Singapore crypto platform defended its first advertisement, saying it was promoting the speed
As part of a Crypto.com campaign last year, actor Matt Damon appeared in a series of ads in October. As well, Crypto. com purchased naming rights to the iconic Staples Center in Los Angeles, renaming it the Crypto.com Arena for the next two decades.
February 2022 | Volume 13
