The UK’s advertising watchdog has prohibited advertisements from a major cryptocurrency company, Coinbase, which were deemed to suggest that crypto investments could alleviate concerns related to the cost of living.
Complaints were lodged with the Advertising Standards Authority (ASA) following a series of Coinbase advertisements in August. These ads portrayed the UK in various states of economic hardship, accompanied by a satirical slogan and the company’s logo.
The ASA upheld these complaints, banning the advertisements and concluding that they “trivialised the risks of cryptocurrency,” an asset class largely unregulated within the UK.
Coinbase expressed disagreement with the watchdog’s ruling.
In a statement, the company indicated that while it respects the ASA’s decision, it fundamentally disagrees with the characterization of a campaign reflecting widely reported economic conditions as socially irresponsible.
It stated that the advertisement aimed to provoke discussion about the financial system’s state and the necessity of considering improved futures, rather than offering simplistic solutions or minimizing risk.
Beyond three posters, a video advertisement also depicted individuals and businesses facing difficulties, while characters performed a satirical song suggesting everything was “just fine.”
The watchdog noted that scenes presented to viewers included a family home “in a state of disrepair,” a high street with closed shops “littered with binbags and rats,” and a supermarket displaying signs indicating price increases.
The advertisement’s satirical message was reinforced by the slogan “if everything’s fine don’t change anything,” which appeared alongside the Coinbase logo.
The ASA reported that 35 individuals complained about these advertisements, asserting they were “irresponsible” and downplayed the risks associated with crypto investments.
The watchdog upheld these complaints in its decision published on Wednesday.
It stated that by portraying the country as struggling with issues like the cost of living and home ownership, the advertisements suggested to consumers that a financial change was necessary.
The combination of the slogan and the logo further implied that Coinbase “could be part of the solution to the financial problems presented in the ads.”
The Financial Conduct Authority has previously cautioned individuals considering cryptocurrency investments to be “prepared to lose all their money” if its value declines.
Risk warnings
This is not the first instance of the UK’s advertising regulator taking action against crypto advertisements.
The ASA has previously raised concerns regarding cryptocurrency promotions that fail to adequately disclose investment risks.
In addition to investigating and banning certain problematic advertisements, the authority has cautioned that digital assets, despite their increasing popularity, remain “complex” and “volatile.”
It mandates that advertisements for crypto products must explicitly state they are not regulated by the FCA, and that potential investors risk losing money without any means of recovery.
In response to the ASA’s decision, Coinbase acknowledged that digital assets are “not a panacea.”
However, the US crypto exchange maintained its belief that “their responsible adoption can play a constructive role in a more efficient and freer financial system.”
It stated that Coinbase remains committed to authentic, thought-provoking communication and to operating responsibly within the UK’s regulatory framework.
