UK advertisement watchdogs release warning to crypto companies

Advertising Standard Authority (ASA) of the UK issued its renewed guidelines for more than 50 Crypto companies including Coinbase exchange, in favour of the security of crypto investors against volatility in the price of virtual currencies.

The Crypto industry saw a huge Inflow of money in the crypto Industry last year and that resulted in a big significant pump in the price of the majority of the crypto assets. Because of such a significant hike in the fund inflow in the crypto industry, the majority of the government agencies started to take some significant steps against the crypto industry to ensure the safety of investors. In particular, on the occasion of the new year 2022, many countries’ regulatory bodies released guidelines for crypto companies to keep the advertising standards under the safety of users.

In the latest issued guidelines of Advertising Standards Authority (ASA), all the crypto companies are ordered not to promote any kind of crypto-related services, which intends to attract people to buy Cryptocurrencies with the use of Credit cards and also ordered strictly to not to suggest people buy digital assets for their pension or swap their pension funds into cryptocurrencies. 

On 22 March, Nick Hudson, Operations Manager at the ASA, ordered more than 50 crypto companies to not encourage people to buy digital assets.

“It’s a step up. This is a sector that we recognize needs some work, as the government has recognized, too,”

This is not the first time, when ASA issued guidelines to the crypto companies, earlier this, it raised special advisory to the crypto projects, which promotes cryptocurrencies. In particular, they targeted Floki in meme coin, which promoted coin in public areas like metro stations. 

UK government officials and thoughts on crypto 

Once Andrew Bailey, governor at Bank of England, said that cryptocurrencies have no intrinsic value and people who are investing in cryptocurrencies should be ready to lose all their money. 

Nikhil Rathi, the chief executive officer of Financial Conduct Authority (FCA) of the UK, claimed that cryptocurrencies are playing a vital role in criminal purposes and also the UK government should block all concessions to the people who lose their investment in cryptocurrencies, under any situation. 

Read also: Honduras may follow El Salvador’s footsteps to adopt Bitcoin