Coinbase is currently under fire in the United Kingdom for its cryptocurrency advertisements. According to a report by The Guardian on Wednesday, the UK Advertising Standards Authority banned some Coinbase ads due to misleading claims.
The advertising regulator in the UK said the cryptocurrency company presented digital assets as a solution to the cost of living. Also, the regulator mentioned how the exchange downplays the risks of investing in virtual assets.
Likewise, the report revealed that the ads included a satirical musical-style video and three posters. As reported, the ASA said the advertisements are “irresponsible” and “trivialized the risks of cryptocurrency.
The regulator said it frowned at the use of humor to reference serious financial concerns. Furthermore, the UK Advertising Standards Authority said Coinbase’s presentation of high-risk financial products as a solution to financial issues is deluding.
Providing insight into the controversy, in July, Clearcast, the agency that approves adverts for TV in the UK, rejected Coinbase’s video ads. The agency argued that the clips presented crypto as a solution to economic issues without enough evidence to back the claims.
Despite rejecting the video, the ASA disclosed that it still managed to circulate online. The agency mentioned that Coinbase’s posters promoting cryptocurrencies are in strategic places such as the London Underground and rail stations.
More so, the regulator established that despite promoting digital assets that none of the adverts warned about the risks that come with them.
Coinbase CEO insists crypto ads contain “some truth”
Meanwhile, Coinbase CEO, said the TV ban indicated that the ads contain some truth. He described the ban as an attack, stating that it is aimed at censoring digital assets.
The CEO narrated that the traditional financial system is no longer working for the masses, and the virtual asset sector has proved to be a reliable alternative. He established that crypto is the way out to address the issues created by the shortcomings of existing financial architectures.
Recall that the Financial Conduct Authority emphasized that all crypto-promoting ads must come with potential risk labels. In March 2022, the ACA issued a warning to more than 50 crypto businesses in the UK due to their violation of advertising regulations.
The regulator demanded the review of the firms’ ads and ensured they complied with the stipulated standards. As per a Binbits report, the ACA demanded that crypto companies disclose the risks associated with digital assets.
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