UK Advertising Regulator Issues “Red Alert” Guidance for Crypto Ads

Over 50 companies have been notified by the U.K. Advertising Standards Authority (ASA), that they are required to revise their advertisements in order to comply with the new guidelines.

The advertising regulator told CoinDesk the list of 50 includes all firms that have previously been subject to ASA rulings. Among these companies are Coinbase (COIN), eToro, Luno and Crypto.com.

“This is a ‘red alert’ priority issue for us and we’ve recently banned several crypto ads for misleading consumers and for being socially irresponsible,” the ASA said.

Advertisers are required to state clearly that crypto is not regulated in U.K. and that investment value can fluctuate and go down. Advertisements must not state or imply that investment decisions can be made easily, trivially, or are suitable for everyone. “imply a sense of urgency to buy or create a fear of missing out, or that investments are ‘low risk’.”

Companies that advertise crypto services need to make sure their ads conform to this guidance by May 2. Otherwise, they will be reported to Financial Conduct Authority.

In January, the FCA announced its plans to tighten oversight of crypto advertising after it was granted additional powers by the government to regulate the industry.

CoinDesk had reached out to eToro and Luno for comments about the new guidance. However, no response was received by press time. Digital Currency Group owns Luno.