Crypto.com become the latest victim of the UK’s crypto advertising clampdown, following restrictions on the marketing endeavors of Coinbase, Kraken and others last year.
The United Kingdom’s Advertising Standards Authority, or ASA, has ruled to place an official ban on two mobile application advertisements from popular trading platform Crypto.com that promoted the ease of purchasing cryptocurrencies such as Bitcoin, as well as earning yield rewards on digital assets.Gaining notoriety within the industry for their strict legislation on the proposed implications of a cryptocurrency advert, the ASA flagged the marketing material for breach of a number of financial watchdog rules, including not effectively stating the risk potential of the investment, abusing consumer’s lack of market understanding and not specifying the limitations of purchasing crypto with credit cards.Crypto.com removed the advert voluntarily once the concern was raised, but debated the nuances of the advertisements with the regulator, stating that the intention of the inaugural advert — published on the Love Ball app on July 30, 2021 — was that users could “earn up to 8.5% p.a.” was through yield investments, not specific crypto assets.Likewise, according to Crypto.com’s written response, the subsequent advert, published in the Daily Mail newspaper app on Sept.
