Advertising Watchdog Warns 50 Firms Over Crypto Ads – Forbes Advisor UK

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March 22: Advertising watchdog warns 50 companies against crypto ads

Britain’s advertising regulator has issued an enforcement notice to more than 50 companies promoting cryptocurrencies, setting out its standards for advertisements and including warnings against tricking investors into buying for fear of running out.

The Advertising Standards Authority (ASA) said it issued the notice as part of an ongoing crackdown on “problematic” cryptocurrency ads and to ensure consumers are treated fairly in this area of ​​the financial market. .

As part of the advisory, ASA provides guidance on how the crypto industry should follow the rules when promoting its products.

ASA says advertisers should make it clear that cryptocurrencies are unregulated in the UK and the value of holdings can go down as well as up.

He adds that promotions should not imply that cryptocurrency decisions are trivial, simple or suitable for everyone, nor should they imply a sense of urgency to buy or create a fear of missing out.

The guidance extends to advertisements in print, TV, email, outdoor posters, in posts promoted on social media, and through paid deals with influencers.

The ASA will continue to monitor the situation and warn that it will take “targeted enforcement action to ensure a level playing field” if the problematic ads persist after May 2.

Earlier this year, the government said new rules on cryptocurrency advertising, overseen by the city’s watchdog, the Financial Conduct Authority (FCA), would be introduced to bring them in line with traditional financial promotions. .

Guy Parker, Managing Director of ASA, said: “The popularity of crypto has exploded in recent years. We are concerned that people will be tricked by advertisements into investing money they cannot afford to lose, without understanding the risks. Together with the FCA, we will take strong action against any advertiser who fails to ensure that their ads are responsible. »

Sarah Pritchard, Executive Director of Markets at the FCA, said: “People should be wary of any promotion promising high investment returns and do further research before investing, including through the FCA’s InvestSmart website. .

“Crypto-assets are unregulated and those who invest in them must be prepared to lose all their money.”

March 11: FCA Requires Closure of Crypto ATMs

Watchdog, the Financial Conduct Authority (FCA) has asked crypto-asset companies to shut down all automated teller machines (ATMs) offering crypto services in the UK.

ATMs offering crypto-asset exchange services in the UK must be registered with the FCA and must comply with UK Money Laundering (MLR) regulations.

The regulator claims that none of the crypto-asset companies registered with it have been approved to offer crypto-ATM services. This means that anyone operating in the UK is doing so illegally and consumers should not use them.

The FCA is contacting crypto ATM operators in the UK to tell them that the machines will be shut down or that the operators will face other measures.

Regulator regularly warns consumers that crypto-assets are unregulated and high risk, meaning people “are very unlikely to have protection if things go wrong, so people have to be prepared to lose all their money if they choose to invest in them. ”

March 4: Man City signs crypto deal with OKX

Premier League champions Manchester City have signed a multi-year deal with cryptocurrency exchange OKX.

The partnership, OKX’s first step into football sponsorship, will give the swap a presence in the club’s Ethiad Stadium. The deal covers both men’s and women’s teams, as well as City’s esports operations.

Seychelles-based OKX claims to be the second largest cryptocurrency exchange with 20 million users worldwide. As part of the deal, he said he would collaborate with City “to explore future innovation projects together”.

Sponsorship deals between football clubs and the cryptocurrency industry have become commonplace in recent months.

Exchange Bitget recently announced tie-ups with Turkish side Galatasaray and Italian club Juventus. See the February 17 story below.

February 17: Galatasaray deal highlights sport’s growing ties to crypto industry

Turkish football team Galatasaray has partnered with a cryptocurrency exchange in a branding initiative to introduce fans to the crypto industry.

The sponsorship deal, brokered by Capital Sports Media Group, will feature the Bitget exchange as an official partner of Galatasaray across multiple platforms and media assets across the club’s football and basketball teams.

The announcement is the latest trade deal involving football and the cryptocurrency industry. This follows Bitget’s recent association with Italy’s Juventus.

Earlier this month, Polish team Legia Warsaw revealed a tie-up with sports and entertainment agency Capital Block, to explore how to market non-fungible tokens (NFTs) – a form of digital collectible – with his fan base.

Last October, Capital Block, the NFT division of Capital Media, advised Galatasaray on their first NFT release, featuring Ali Sami Yen, the club’s founder, which sold out in less than a minute.

Sandra Lou, CEO of Bitget, said, “Turkey has demonstrated significant interest in the crypto industry and we look forward to growing our community in this market as we continue to lead education and knowledge-sharing opportunities. knowledge in space.

Tim Mangnall, CEO of Capital Block, said: “We have worked with Galatasaray for some time now and we know how committed the club is to aligning themselves with the most modern and revolutionary technologies.”

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