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 which 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 a number of financial watchdog rules, including not effectively stating the risk potential of the investment, abusing consumer’s lack of market understanding, as well as 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 — w that users could “earn up to 8.5% p.a”, was insinuating through yield investments, not specific crypto assets.
Likewise, according to Crypto.com’s written response, the subsequent advert, published on the Daily Mail newspaper app on Sept 1, was intending to showcase the speedy process of purchasing crypto assets on their platform — “Buy Bitcoin with credit card instantly” — as opposed to directly advising consumers to engage in trading activities.
Related: UK advertising watchdog bans crypto ads for Coinbase and Kraken
Crypto.com’s marketing forays in the United States has propelled their brand recognition to a mainstream audience. The Matt Damon TV commercial, the purchase of a twenty-year lease $700 million for the naming rights for the historic Staples Center now known as the Crypto.com Arena, as well as the launch nonfungible tokens, or NFTs in partnership with the UFC, have all expanded the platform’s ambitions.
Concluding their assessment, the ASA advised Crypto.com that future marketing material of such kind must be made “sufficiently clear that the value of investments in cryptocurrency was variable and could go down as well as up and that…