Crypto.com (CRO) : le Royaume-Uni interdit 2 publicités jugés trompeuses, les restrictions continuent

UK bans 2 ads deemed misleading, restrictions continue

Two Crypto.com (CRO) Ads Banned in UK Following Complaint

The Advertising Standard Authority (ASA), the British authority responsible for controlling advertising, has just banned two advertisements issued by the exchange Crypto.com following a complaint. In a press release published on its site on January 5, 2022, the organization assures that the two advertisements were misleading for an uninformed consumer.

Seen in early September 2021 in the mobile application of the Daily Mail, a popular British newspaper, the first offending advertisement advised to buy Bitcoin (BTC) with “a credit card instantly”. The second announcement, released in July in the smartphone game Love Balls, stated: “earn up to 3.5% per year”. Subsequently, the ad instead showed an annual return of 8.5%. This is an advertisement for one of Crypto.com’s Crypto Earn offers.

According to the ASA, these two communications are misleading because they fail to remember the risks associated with investing and exploit “consumer inexperience or credulity”. The marketing constable had made the same criticism of the Luno app’s “Time to Buy Bitcoin” ads.

The British regulator also considers that the returns mentioned are misleading, because “ the basis for calculating earnings forecasts has not been clearly established” and cannot be clearly substantiated by Crypto.com. Additionally, the ads neglect totalk about taxes on profits made on cryptoassets.

This turn of the screw adds to a series of bans that have occurred in recent months. Last July, the regulator announced its intention to increase its vigilance vis-à-vis advertisements referring to cryptocurrencies. The organization is committed to tracking down and censoring all misleading commercial communications. However, many communication media are not yet regulated by clear legislation in the United Kingdom.

Matching words with deeds, the ASA banned seven cryptocurrency advertising campaigns, including those of Coinbase, eToro or Papa John’s, the famous pizza brand. The regulator also attacked posters devoted to the Floki Inu (FLOKI) cryptocurrency. Placarded in the streets of London, the advertisements encouraged Londoners to invest in the memecoin before it was too late.

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Crypto.com Responds to Ad Ban

At the request of the ASA, Crypto.com promptly stopped broadcasting advertisements on British territory. The exchange platform has undertaken to review its copy on the basis of the comments sent by the marketing policeman. The company, in the midst of a promotional campaign for its services, however defended itself by stating that the advertisements were content to highlight “the speed at which users could buy cryptocurrency on their platform”.

Crypto.com also specifies that the advertising concerning its Crypto Earn offer is intended exclusively for individuals who already hold cryptocurrencies. The exchange believes that people who have already invested in digital assets are aware of the risks associated with their investment. In addition, the platform emphasizes that all the usual warnings, concerning taxes on profits in particular, are clearly visible on its website.

Questioned by our colleagues from The Block, a spokesperson for Crypto.com claims that the exchange collaborates with the British authorities so that its advertisements comply with the law in force. Mirroring industry behemoths such as Binance, the exchange seems ready to do anything to escape the wrath of financial regulators.

“We believe that building a fully regulated industry is the best way to accelerate the global transition to cryptocurrency, which has long been our mission. Engaging regulators to ensure compliance and build trust remains Crypto.com’s top priority. We appreciate ASA’s collaborative dialogue and commitment to UK advertising in this relatively new industry, and remain committed to working with them.”explains the spokesperson.

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About the Author : Florian Bayard

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