The UK regulators have prohibited Coinbase from running specific advertisements because the ads downplayed cryptocurrency investment hazards while showing how crypto impacts residential expenses.
The Advertising Standards Authority which functions as the UK advertising regulatory body determined that the advertisements showed irresponsible behavior which would mislead viewers into thinking that high-risk financial products served as effective solutions for critical economic problems according to The Guardian report.
Musical ad and posters pulled from public view
Three poster ads and a satirical musical video constituted the prohibited content. The video which premiered in July showed a deteriorating UK area that featured broken houses and trash-filled streets and rats and people who sang about increasing food costs and stagnant salary levels.
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The ASA found that the ad remained online after Clearcast had already denied its TV broadcast approval. The posters appeared at busy locations which included London Underground stations and rail hubs.
The posters used messages including “home ownership out of reach” and “eggs now out of budget” and “real wages stuck in 2008” The slogan “If everything’s fine, don’t change anything” appeared with Coinbase’s logo.
The ASA determined that the advertising content failed to provide proper disclosure about cryptocurrency investment dangers. The Financial Conduct Authority has maintained its position that all cryptocurrency promotions in the UK must display prominent danger notifications according to current UK financial regulations.
The ASA found that using humour to describe serious financial matters would mislead people into believing that cryptocurrency provides them with simple financial solutions despite its unpredictable nature and associated dangers.
Coinbase CEO defends campaign
The Coinbase CEO Brian Armstrong defended the campaign following its TV ban because he believed that criticism proved the campaign had reached its intended audience.
Armstrong explained that showing traditional financial system problems proved crypto technology offered different solutions. The message would receive more public recognition because people tried to prevent its distribution according to Armstrong.
