New ASA Guidance on Advertising Cryptoassets
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The UK’s regulator of advertising, the Advertising Standards Authority (ASA), has recently published updated guidance on the advertising of cryptoassets, including utility tokens and non-fungible tokens (NFTs). The ASA announced in November 2021 that cryptoasset advertising is now “a red-alert priority issue” and it is taking action.
Adverts for cryptoassets are reaching record levels in the UK. However, due to the complexity and volatility of cryptoasset products, the ASA is worried about potential consumer harm and the need for consumers to be protected against the risks that these investments may involve. To this end, the ASA made a series of rulings, at the end of 2021 and beginning of 2022, banning a large number of cryptocurrency adverts. These rulings have helped form the basis of these new guidelines. The ASA’s aims are to ensure that cryptoasset adverts do not mislead consumers about a product’s risks or act irresponsibly in their promotion.
This bulletin summarises the guidance issued by the ASA’s Committee of Advertising Practice (CAP) Executive in relation to cryptoasset adverts and promotion.