As the UK takes a stricter regulatory stance on the cryptocurrency industry, a large local advertising industry organization has announced a crackdown on crypto ads.
The Advertising Standards Authority (ASA), the independent UK advertising regulator, plans to launch a major effort this month to track down and shut down deceptive crypto ads, the Financial Times reported on Friday.
Miles Lockwood, ASA’s director of complaints, said the authority would particularly target irresponsible crypto ads that run online and on social media platforms, adding:
“We see this as an absolutely crucial and priority area for us. Where we find trouble, we will crack down hard and quickly. “
Lock wood clarified that the ASA has identified crypto ads as a “red alert” priority over financial ads. As such, the regulator is now increasing its ability to track suspicious online advertisements using technologies such as scratching and artificial intelligence. The ASA is also working with major technology platforms to get the fraudulent ads removed as a separate effort. The authority also plans to issue warnings and may require players to include warnings in their advertisements.
“We recognize that there are certain types of media that we have not been able to fully address so far,” said Louise Maroney, who heads financial complaints for the ASA.
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According to the report, the ASA has renewed its efforts to oversee crypto advertisements, as most crypto investments fall outside the scope of the UK’s strict rules for promoting traditional financial products. This year, the authority paid more attention to advertisements in the crypto industry, removing some advertisements from crypto exchanges, such as Coinfloor.
Despite the ASA’s increased attention to the crypto-ad industry, the UK’s main financial regulator, the Financial Conduct Authority (FCA), doesn’t believe crypto investing is primarily driven by ads. “Only a minority of people buy digital coins based on advertising, but those who do tend to perform worse,” the FCA wrote in its study of crypto consumers released in mid-June. .