The Advertising Standards Authority has upheld numerous complaints about adverts for Crypto.com.
As part of the complaints, it was highlighted that the adverts failed to provide consumers, who were perhaps inexperienced when it came to trading and digital currency, about the risk of investment.
The advert featured on the Daily Mail app and included text which stated ‘Buy Bitcoin with credit card instantly’.
Crypto.com stated that it ‘understood the ASA’s guidance stating that cryptocurrencies were not financial products to mean that advertising in that sector was not subject to section 14 (Financial Products) of the non-broadcast CAP Code’.
Nonetheless, the body outlined that the ad must not appear again in the form complained about. It also revealed: “We told them to ensure that their future marketing communications did not irresponsibly take advantage of consumers’ lack of experience or credulity by irresponsibly encouraging investing in cryptocurrency using a credit card, and by not making clear that CGT was not due in some circumstances on cryptocurrency profits.”
It follows a decision by the ASA on Skrill, which led to the firm removing a paid-for advert on Reddit, which stated ‘Want to try making a profit on crypto without risking your money? Sign up now and give crypto a go, for free. If the value goes up the profits are yours to keep’.
In responding to a complaint over the advert, the regulatory watchdog highlighted that the ‘CAP Code required that marketing communications for investments made clear that the value of investments was variable and, unless guaranteed, could go down as well as up’.
