Through an Enforcement Notice published on March 2, the Advertising Standards Authority (ASA), instructed impacted firms to review their ads to ensure that they comply with the rules released by the UK’s independent advertising regulator.
Applicable rules includes the following:
All ads must expressly and prominently state cryptocurrencies are unregulated in the UK, their profits may be subject to Capital Gains Tax and the value of investments can go down as well as up.
Qualifications must be presented clearly for the medium used (digital posters, website)
Claims for rates must be representative and make clear how the rate is calculated and what significant conditions apply.
For media limited by time or space, advertisers are expected to make their best efforts to include all significant conditions in an ad, this includes adding an image that clearly states the relevant conditions.
Ads containing problematic claims are not considered compliant even with the inclusion of a qualification.
Marketing communications must be prepared with a sense of responsibility to consumers and society.
Marketing communications must not mislead the consumer by omitting material information by hiding material information or presenting it in an unclear, unintelligible, ambiguous or untimely manner.
Marketing communications must state significant limitations and qualifications.
The Enforcement Notice is applicable to ads relating to cryptocurrencies and crypto exchanges. It also applies to ads or promotions which involve the transfer, sale or supply of cryptocurrencies targeted at UK consumers or UK-based advertisers.
Firms that do not review their ads in accordance with this notice by May 2 could be subject to sanctions.