Fifty crypto companies have been told to clean up their adverts or face enforcement action by both the Advertising Standards Authority and the Financial Conduct Authority (FCA).
The ASA has written to the fifty and told them to review their ads to ensure they are complying with the current rules.
In particular, the ads must state that cryptos are unregulated and can go down in value as well as up
Any suggestion that investment decisions are easy, simple and suitable for anyone is also barred are warnings of FOMO or fear of missing out if people don’t act or that cryptos are low risk.
“This is a ‘red alert’ priority issue for us and we’ve recently banned several crypto ads for misleading consumers and for being socially irresponsible,” said the ASA.
“The notice continues our work in clamping down on problem crypto ads.”
Any ad related to the transfer, sale or supply of cryptocurrencies, targeted at UK consumers is covered by the rules, said the ASA.
If any of the fifty continue to run ads that breach the rules after 2 May, they face targeted enforcement action and being reported to the FCA.
“Crypto has exploded in popularity in recent years. We’re concerned that people might be enticed by ads into investing money they can’t afford to lose, without understanding the risks,” said Advertising Standards Authority Chief Executive, Guy Parker.
“Working alongside the FCA, we’ll take strong action against any advertiser who fails to ensure that their ads are responsible.”