Advertising for cryptocurrencies such as Bitcoin (CRYPTO: BTC) and related companies is expected to become much harder in the United Kingdom as local regulators increase their pressure on the space.
What Happened: U.K. regulator Advertising Standards Authority (ASA) announced that it issued an enforcement notice to over 50 companies that advertise cryptocurrencies. The regulator instructed those firms to "review their ads and to ensure they understand and are complying with the rules so that consumers are treated fairly."
The ASA insists that crypto advertisers "should clearly state that cryptocurrencies are unregulated in the UK," point out that their value can go down, avoid representing investment decisions as "trivial, simple, easy or suitable for anyone" and avoid implying a sense of urgency or creating fear of missing out or the perception that the investment is low risk.
Also Read: UK Regulator Bans Crypto ATMs: 'People Should Be Prepared To Lose All Their Money'
The regulator said that crypto advertising "is a ‘red alert’ priority issue" since most people do not fully understand crypto and "there is a real risk that people may lose money."
Guy Parker, the regulator's chief executive, said that the organization is "concerned that people might be enticed by ads into investing money they can’t afford to lose, without understanding the risks."
The ASA also said that it is working alongside local financial regulator Financial Conduct Authority to take action against those who are unable or unwilling to abide by the newly-imposed rules.
The rules apply to ads for cryptocurrencies, crypto exchanges and ads or promotions which otherwise involve the transfer, sale or supply of cryptocurrencies that target customers in the United Kingdom or are targeted globally by U.K.-based advertisers.
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