The UK advertising watchdog announced strict guidelines and imposed a ban on the meme coins, in favor of investors’ security.
UK is a crypto and blockchain industry friendly country in the world. On one side it is showing its eagerness to go with Blockchain-based development works, then, on the other hand, it is showing concerns to save the investors from ponzi schemes running in the crypto industry. However, UK regulators are doing their best to bring as much as possible restrictions on unfair activities running in the crypto space but some people are continuously claiming that the UK government wants to crush this industry and wants to adopt the restrictive nature on crypto like the EU.
In Q4 2021, we saw huge advertisements and publicity efforts by the project team of FLOKI in coins to attract investors. In particular, the marketing strategy of FLOKI grabbed huge attention when Floki was targeted by the UK advertising watchdog, for its running advertisement in public transport areas like metro & bus networks.
On 2 March, the Advertising Standards Authority published their 4 new rules on the advertisement systems and also noted that one of the rules will be to ban the digital assets, which are taking advantage of innocent/new investors of the crypto industry.
ASA noted that the advertisement of meme coins was an irresponsible thing as per advertisement guidelines.
In particular, they noted the advertisement of Crypto asset in which a cartoon dog wearing a helmet was trying to intend that investment will be risk-free and also tends to grab huge investors rapidly just like they (crypto investors) are missing the opportunity to invest.
“We considered that the use of cartoon imagery gave the impression that purchasing cryptocurrency was a light-hearted and trivial matter,” the ASA ruled, “As such, it distracted consumers from the seriousness of an investment which was volatile and unregulated.”
In response, Floki inu claimed that advertisements of the FLOKI in coins were performed to inform the investors about the coin. So
“The ads must therefore not appear in the form complained about.”