Advertisement of cryptocurrencies like Bitcoin (BTC) and related companies are more difficult in the UK, as local regulators increase their pressure on the sector.
The UK regulator, the Advertising Standards Authority (ASA), announce which has issued an enforcement notice to more than 50 companies advertising cryptocurrencies. The regulator has urged these companies to “review their ads and make sure they understand and comply with the rules so that consumers are treated fairly.”
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The ASA insists that advertisers of cryptocurrency “should clearly indicate that they are not regulated in the UK,” indicate that their value could fall, avoid presenting investment decisions as “trivial, simple, easy or appropriate for anyone” and avoid implicitly. Feeling of urgency, creating a fear of being left behind or feeling like an investment is low-risk.
The regulator noted that advertising cryptocurrencies is a “priority” red flag issue because most people do not fully understand cryptocurrency and “there is a real risk of people losing money.”
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Jay Parker, the regulator’s chief executive, said the organization was “concerned that advertisements might tempt people to invest money they could not afford to lose, without understanding the risks.”
The ASA also stated that it is working with the local financial regulator, the Financial Conduct Authority, to take action against those who are unable or unwilling to comply with the newly imposed rules.
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Rules apply to cryptocurrency ads and platforms exchange and advertisements or promotions involving the transfer, sale or supply of cryptocurrency directed to UK customers or country-based advertisers globally.
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