Cryptocurrency advertisements to be reassessed
Attempts are being made by government organizations to bring order to what is often seen as a mostly uncontrolled business as the worldwide usage of cryptocurrencies grows at an exponential rate. In order to ensure that such actions continue, the Irish advertising watchdog has announced intentions to reassess the legislation governing the marketing of cryptocurrencies in the coming months.
According to the Irish Independent, the Advertising Standards Authority of Ireland (ASAI) made the decision in response to an increase in the number of advertisements promoting cryptocurrency businesses such as Floki, as well as complaints about the lack of clarification in those advertisements about the potential risks of investing in cryptocurrency.
According to a spokesman for the regulatory body,
In light of the rising trend of bitcoin business marketing, the Advertising Standards Authority of Ireland (ASAI) is investigating whether further guidelines and/or recommendations are necessary. (…)
The ASAI is aware of consumer concerns concerning their understanding of cryptocurrencies. There are standards specific to financial advertising in the ASAI code, in addition to general principles on truthfulness, honesty, and substantiation.”
Advertising is prohibited from taking advantage of customers’ ignorance under these guidelines, and marketers are required to emphasize that their investments are risky and that they might go either way – either down or up – in value.
Either of the following outcomes will occur when the agency completes its evaluation. There will either be an update to the industry recommendations on the ASAI code, or the code itself will be susceptible to modification.
In February, the ASAI intervened in support of a complaint alleging that an advertisement promoting the cryptocurrency Floki Inu (FLOKI) failed to provide a disclaimer concerning the coin’s fluctuating value, as required by law.
As a consequence, the corporation was forced to pull the advertisement.
Attempts are being made by government organizations to bring order to what is often seen as a mostly uncontrolled business as the worldwide usage of cryptocurrencies grows at an exponential rate. In order to ensure that such actions continue, the Irish advertising watchdog has announced intentions to reassess the legislation governing the marketing of cryptocurrencies in the coming months.
According to the Irish Independent, the Advertising Standards Authority of Ireland (ASAI) made the decision in response to an increase in the number of advertisements promoting cryptocurrency businesses such as Floki, as well as complaints about the lack of clarification in those advertisements about the potential risks of investing in cryptocurrency.
According to a spokesman for the regulatory body,
In light of the rising trend of bitcoin business marketing, the Advertising Standards Authority of Ireland (ASAI) is investigating whether further guidelines and/or recommendations are necessary. (…)
The ASAI is aware of consumer concerns concerning their understanding of cryptocurrencies. There are standards specific to financial advertising in the ASAI code, in addition to general principles on truthfulness, honesty, and substantiation.”
Advertising is prohibited from taking advantage of customers’ ignorance under these guidelines, and marketers are required to emphasize that their investments are risky and that they might go either way either down or up in value.
