The UK's Advertising Standards Authority has banned advertisements from cryptocurrency exchange Coinbase for trivialising the risks of investing in crypto. The ads, which depicted the country in economic disrepair, suggested that cryptocurrency could address financial woes. Coinbase has expressed disagreement with the decision.
The Advertising Standards Authority (ASA) in the UK has upheld complaints against a series of Coinbase advertisements, leading to their ban. The ads, which appeared in August, portrayed scenes of national hardship including a family home in disrepair, a high street littered with binbags and rats, and supermarkets displaying price increase signs. Accompanying these visuals was a satirical slogan, "if everything's fine don't change anything," alongside the Coinbase logo.
The ASA determined that the three posters and a video ad, featuring characters singing about everything being "just fine," implied that consumers should make a financial change through cryptocurrency investments. The regulator noted that by highlighting issues like the cost of living and home ownership, the ads positioned Coinbase as a potential solution, thereby trivialising the unregulated and risky nature of crypto. A total of 35 complaints were received, labelling the promotions as irresponsible.
The decision was published on Wednesday. Coinbase responded by stating, "While we respect the ASA's decision, we fundamentally disagree with the characterisation of a campaign that critically reflects widely reported economic conditions as socially irresponsible." The company clarified that the advert aimed to provoke discussion on the financial system and better futures, not to minimise risks or offer simplistic solutions.
This is not the first instance of the ASA addressing cryptocurrency promotions. The watchdog has previously warned that such ads must clearly state that crypto is unregulated by the Financial Conduct Authority (FCA) and that investors risk losing all their money without recourse. The FCA itself has cautioned people to be prepared for total loss if crypto values collapse. Coinbase acknowledged that digital assets are "not a panacea" but maintained they can contribute to a more efficient financial system, committing to responsible operations within UK regulations.
