April 7, 2022
We wish to bring to your attention that on Tuesday (March 22, 2022), the Committee of Advertising Practice (“CAP”), as part of the Advertising Standards Authority (“ASA”), has issued an enforcement notice (“Notice”) with regards to advertisement of crypto currency:
“Ads for cryptocurrencies have been ruled misleading and socially irresponsible and also in breach of rules which apply to ads for financial.”
This ruling applies to ads for cryptocurrencies, crypto exchanges and ads or promotions which otherwise involve the transfer, sale or supply of cryptocurrencies, targeted at UK consumers or that are targeted globally on the behalf of UK-based advertisers. The ruling will be enforced by the Financial Conduct Authority (“FCA”).
The main requirements of the CAP notice are:
The ASA further explained and highlighted that the notice and guidelines does not apply to the general retail of items where cryptocurrency is offered as a payment option, or the general retail of cryptocurrency-themed merchandise. This notice also does not address the specific descriptive content for the sale of other forms of crypto-assets such as utility tokens (otherwise known as fan tokens) or non-fungible tokens (NFTs), however, all such advertising is subject to the broader CAP Code and future enforcement action is planned for these other forms of crypto-assets.
If you have any questions or required clarifications, our privacy-cyber team and cyber experts, will be happy to assist.