Tuesday, June 22, 2021

UK’s advertisement authority bans crypto exchange Luno’s ad campaign.

The Takeaway:

A major advertising industry organization in the United Kingdom has ruled on crypto exchange Luno's ad campaign telling people "it's time to buy" Bitcoin.

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UK’s Advertising Standards Authority, a self-regulating ad organization, officially halted an advertising campaign by cryptocurrency exchange Luno for being misleading and irresponsible. “The ads must not appear again in the form complained about,” the ASA said Wednesday, noting that ads like this should mention that Bitcoin investment is highly risky due to its extremely volatile nature. Luno’s ad posters contained an image of Bitcoin saying, “If you’re seeing Bitcoin on the Underground, it’s time to buy.”

 

ASA bans crypto exchange Luno’s ad campaign. 

The ASA said that it received several complaints regarding Luno’s ad campaign, with people stressing that their posters failed to illustrate the risk of Bitcoin investment. “We considered that consumers would interpret the statement ‘it’s time to buy’ as a call to action and that the simplicity of the statement gave the impression that bitcoin investment was straightforward and accessible,” the ASA said. Bitcoin investment is “complex, volatile, and could expose investors to losses and considered that stood in contrast to the impression given by the ad, that investment was simple and conventional,” the ad organization wrote.

 

“Luno agreed not to post their Bitcoin ads in their current form again.”

The ASA said that the crypto exchange Luno agreed not to post their Bitcoin ads in their current form again and promised to ensure that future ads would carry a proper risk warning. The latest regulatory action from the UK comes against the backdrop of extreme volatility on crypto markets, with Bitcoin dropping from its all-time high above $64,000 to around $31,000 in mid-May. Bitcoin and other mainstream cryptocurrencies have gained mainstream exposure in the last few years. Bitcoin ads have been around for several years now. Earlier, the Bitcoin Association of Hong Kong launched the “Bitcoin Tram” ad campaign in Hong Kong, with some ads placed right in front of HSBC headquarters. 

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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