Following a complaint, the UK‘s marketing authority stated on Wednesday that it had prohibited two advertisements from Crypto.com.
The first ad, which appeared on the Daily Mail app on September 1, 2021, claimed, “Buy Bitcoin with credit card instantly.”. The second ad, which appeared on the Love Balls app on July 30, 2021, offered “up to 3.5% p.a.” The percentage in the text has risen to “8.5%.”
The Advertising Standards Authority (ASA) said:
“We understood that consumers would interpret the claim ‘Earn up to 3.5% p.a.’ which increased to ‘Earn up to 8.5% p.a.’ to mean that any deposit could increase by the highest amount shown,”
According to the regulator, the advertisements failed to convey the risks of the investment, were irresponsible, and infringed on customers’ inexperience or naivety.
The agency also objected to the idea that customers acquire cryptocurrency on loan without first advising them about the risks of getting into debt.
There were no fines levied, simply warnings that future advertisements must include facts that make it apparent that the value of bitcoin investments might go down as well as up.
The ban follows several of the previous UK regulatory decisions against crypto-related organizations. In December, it prohibited seven crypto adverts, declaring crypto-assets a ‘red alert’ priority. Trading platforms eToro and Coinburp were among the organizations involved, as were exchanges EXMO, Luno, Kraken, and Coinbase and a campaign by pizza restaurant Papa John’s.
It also coincides with Crypto.com’s marketing effort. In November, it inked a 20-year arrangement with AEG to rebrand Staples Center in Los Angeles to Crypto.com Arena. According to a source close to the situation, the contract cost the exchange $700 million, making it one of the greatest sponsorship deals in sports history.
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