Key Takeaways:
- UK’s ASA sets new rules for crypto companies.
- The FCA, along with ASA, will take strict actions against those who will not follow the set rules.
To combat purchases due to Fear of Missing Out and similar techniques, UK’s advertisement authority ASA set forth new rules on Crypto Advertisements.
The volatile crypto market tends to scare the users. So, it will be wrong to take advantage of their concerns to turn them into profits. Earlier this month, the UK’s advertising authority, Advertising Standards Authority (ASA), imposed a ban on Floki Inu’s crypto ad for creating ‘FOMO’ (Fear Of Missing Out) among customers.
Since then, the regulator has been working on policies imposed on crypto companies. In January, ASA also banned two crypto ads as they were misleading and irresponsible.
The ad regulator has sent an Enforcement Notice to almost over 50 companies dealing with crypto. The notice clearly mentions ASA’s primary concern, i.e., the creation of ‘FOMO’ among customers.
It also imposes that advertisements related to crypto should reflect the volatility of the market and the risks involved. The ads should also mention that all the profits made in the crypto market will be subject to capital gains.
The ASA has announced that it will partner with the UK’s leading financial regulator, Britain’s Financial Conduct Authority (FCA). Together, the regulators will plan on the actions taken against the companies that will not abide by the new rules.
