The UK's Advertising Standards Authority (ASA) ruled on Wednesday to ban poster adverts belonging to Luno cryptocurrency exchange over failure to inform inexperienced consumers of risks of investing in Bitcoin
MOSCOW (Pakistan Point News / Sputnik - 26th May, 2021) The UK's Advertising Standards Authority (ASA) ruled on Wednesday to ban poster adverts belonging to Luno cryptocurrency exchange over failure to inform inexperienced consumers of risks of investing in Bitcoin.
The advertising campaign was featured prominently across London's underground and bus network since December 2020. Posters featured a cartoon image of a Bitcoin with text that stated "If you're seeing Bitcoin on the Underground, it's time to buy." According to the ASA, the regulator received several complaints concerning the advertisement's failure to illustrate the risk of the investment, alleging it was taking advantage of consumers' inexperience.
The ASA maintained that the slogan would indeed be seen by the general public as encouraging to buy the digital Currency as an investment, while avoiding to mention that "initial capital invested in Bitcoin was subject to price fluctuations which could result in both losses and gains in value." At the same time, the simplicity of the statement "it's time to buy" gave the impression that "Bitcoin investment was straightforward and accessible," which is not the case, the regulator said.
"For that reason, we concluded that the ad irresponsibly suggested that engaging in Bitcoin investment through Luno was straightforward and easy, particularly given that the audience it addressed, the general public, were likely to be inexperienced in their understanding of cryptocurrencies, and was therefore in breach of the Code," the ASA said in a statement.
In response to the ruling, Luno promised that it will change the format of the ads and will add an appropriate risk warning in the future.
The decision to ban the "misleading" ads came a week after the price of Bitcoin plunged 30% in a day to half of the record highs of over $64,000 it reached in mid-April following the news that China is set to ban financial institutions and payment firms from providing services linked to cryptocurrencies.
