Advertising and marketing associated with cryptoassets is subject to the UK advertising rules policed by the Advertising Standards Authority. New guidance has been issued to assist businesses with complying with these rules.
The guidance highlights that the advertisers must:
- Include all material information so that consumers are not mislead and can make an informed decision in relation to the advertised product;
- Make clear that cryptoassets are not regulated by the FCA or protected by financial compensation schemes. The size and legibility of the text, its positioning in the advert, and the nature of the medium will all be relevant;
- Not take advantage of consumers’ inexperience and set out the wording in a format which is suitable to the target audience (e.g. technical jargon may be possible in a specialist financial publication);
- Make clear that the market value can go down as well as up; and
- State the basis used to calculate any projections or forecasts and make clear that past performance is not a guide for future performance.
The ASA will continue to conduct “proactive monitoring and enforcement” to tackle non-compliant adverts for cryptoassets.