The United Kingdom's advertising watchdog issued a special notice to over 50 crypto firms amid the continuous crackdown for false and misleading advertisements involving the services related to cryptocurrencies.
According to it, the involved companies should evaluate their ads to see if they align with the rules. If the issues with the advertisements continue after May 2, the watchdog said that it would impose certain sanctions for the firms.
UK Watchdog Looks After Misleading Crypto Ads
In a statement from the Advertising Standards Authority or ASA on Tuesday, March 22, the enforcement notices were sent to the crypto firms promoting irresponsible ads across the U.K.
Inside the notice, the watchdog urged the advertisers to focus on regulating the cryptocurrency coins. In addition, ASA said that U.K.-based companies should not encourage people to buy a particular currency in their advertisements.
Aside from that, the authorities added that they should not trigger the "fear of missing out" in terms of investment.
As of press time, ASA did not release the specific names of the firms involved in the clampdown. Previously, it made mention of some platforms, including Papa John's and Coinbase, because of the same concerns involving misleading ads.
The watchdog stressed that this issue is now on the "red alert" status. Those organizations or firms that irresponsibly handle their advertisements are expected to face the consequences.
Following this announcement, it appears that Britain is now implementing strict rules regarding the crypto businesses in the country.
"Rather than attempting to broaden the scope of existing legislation, stifling the market and attracting unintended consequences, a new bespoke regime should be implemented," Global Digital Finance's director of government and regulatory affairs, Lavan Thasarathakumar, wrote in a letter, CNBC reported.
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Increased Consumer Protection Against False Crypto Claims
Back in January, Tech Times reported that the U.K. announced its plans of launching new policies that will combat "misleading" advertisements about cryptocurrencies. In this way, the authorities saw this as an effective solution to protect unaware consumers from deceiving details about investments.
As such, if a firm plans to create promotions for crypto products, the regulators will need an official authorization first.
In the same report, ASA had previously addressed some problems about the widespread advertisements about digital coins. At that time, the authorities said that they had already removed every post that discussed it.
Since the investors will suffer from a great risk from these investments, it's always important to confirm the legitimacy of the crypto before putting your money into it.
Tons of crypto ads are all over the various platforms online. We advise you to be eagle-eyed on these issues to avoid further financial losses and risks.
This article is owned by Tech Times
Written by Joseph Henry
