The ASAI is currently reviewing digital asset promotions and could be considering a crackdown on crypto ads.
According to reports, the Advertising Standards Authority of Ireland is currently reviewing current industry guidance in order to better address potential risks associated with cryptocurrencies.
According to the Irish Independent this move is in response to increased advertising for crypto projects and complaints about lack of clarity in those ads about the products or services they promote.
This review could lead to updated industry guidance or a modification in the code.
“The ASAI is looking into whether additional rules or guidance are required in light of emerging trend of cryptocurrency-related business advertisements,” a spokesperson for the agency told the Irish Independent.
They added that they are aware of consumer concerns regarding cryptocurrency knowledge and that, in addition to the general rules of truthfulness, honesty, and substantiation (ASAI code), there are rules regarding financial advertising.
Global crackdown on crypto ad fraud
The excessive use of crypto ads has been a target for advertising regulators all over the globe.
After determining that many ads did not adequately disclose the risks associated with crypto, the Advertising Standards Council of India (HTC0_) issued guidelines in February 2018.
New rules in Spain have brought about a new penalty for crypto influencers. They could face fines up to $300,000. if they fail to disclose whether they received any remuneration in exchange for their promotion of cryptocurrencies. The country’s National Securities Market Commission has also mandated that influencers and outlets make clear, balanced, impartial, and non-misleading statements about crypto risks.
The UK Advertising Standards Authority issued a Enforcement Notice last month to approximately 50 crypto companies. It provided them with a set of new guidelines to follow by May 2.
These guidelines are intended to protect consumers against FOMO (an acronym for Fear Of Missing Out). Advertisers must clearly state that crypto currencies are not currently regulated in the UK and that they are highly volatile. This can make it risky to invest in crypto.
The UK government has introduced new legislation earlier this year to protect consumers against misleading cryptocurrency ads. All crypto ads within the UK must be approved by either the Financial Conduct Authority or Prudential Regulation Authority.
After the Advertising Standards Authority (ASA), deemed the promotion campaign for Floki Inu “irresponsible”, ads for Floki Inu were removed from the UK .
The British regulator stated that Floki’s ad campaign for London’s public transport “exploited consumer fears of missing out, triviaized cryptocurrency investment” and “took advantage consumers’ inexperience and credulity.”
The ASAI also looked into Floki’s ad campaign in February. They found a complaint that the advertiser did not include a warning about variable asset value and forced the company behind it to take down the ads.
