According to the Advertising Standards Authority of the UK, cryptocurrency ads shouldn’t use the terms “easy” or “low risk” when referring to online investments.
Cryptocurrency advertisers in the United Kingdom are coming under scrutiny as the corresponding authorities believe they may be deceiving their audiences.
The Covid-19 pandemic has seen popularity skyrocket for several digital assets such as cryptocurrencies and non-fungible tokens, with many people and companies quick to get entangled in this new online industry without realising the risks that come with it.
This is what the English authorities are attempting to regulate, asking from cryptocurrency agencies to be careful how they phrase their advertisements and what type of words they use when they attempt to attract new customers.
Calling cryptocurrency investments as “low risk”, “easy” or “trivial” is misleading, according to the ASA, as the online tokens are not only highly volatile but have also yet to be regulated by the British government.
“We’re concerned that people might be enticed by ads into investing money they can’t afford to lose, without understanding the risks,” the ASA’s chief executive officer Guy Parker said in a statement.
The UK watchdog will continue to monitor all cryptocurrency-related adverts and will begin to intervene after May 2, if any further action is considered necessary.
Many other countries around Europe, such as Spain, France and Sweden, have also started to take action in order to bring the increasingly popular digital currencies under greater regulation.
