ASA further wanted Luno to disclose that the results of investing in Bitcoin could be variable.
Watchdogs that regulate the market have cracked the whip on Luno, a crypto exchange based in the UK, the regulators advised the platform to amend its advertising campaign that primarily focused on Bitcoin. ASA, the crypto regulators, insisted that the “it was time to buy” remarks were misleading and also irresponsible.
Posters advertising the crypto exchange had a Bitcoin animation and writings suggesting that it was time for acquisition if potential investors were seeing BTC on the underground. This happening comes barely a week after Bitcoin crashed by 30%. Additionally, it comes a few days after negative sentiments from China and England.
The Chinese government suggested that it wanted to ban cryptocurrencies while the governor of the Bank of England had stated that crypto investors should expect a massive loss or even at worst, lose all their money.
The regulators cum watchdogs said that the advert had resulted in four public complaints. Three of the complainants thought that the advert omitted information on the risks that come with such investments, particularly Bitcoin. Only one of the complainants thought that the company was taking advantage of the public’s ignorance and inexperience.
Overseers at the Advertising Standards Authority said that their decision was informed by the fact that the public will interpret “it’s time to buy” for a call to action. Additionally, they said that the whole statement suggested that investment in Bitcoin was a simple and straightforward affair, contrary to reality where the Bitcoin investment and trading are typically complex, risky, and very volatile.
On Wednesday, the cryptocurrency watchdog, ASA, prohibited Luno from advertising in a similar fashion, without including and highlighting expected risk, in the future. ASA further wanted Luno to disclose that the results of investing in Bitcoin could be variable. One could either lose or gain. Additiianally, ASA suggested that the company should also disclose that the cryptocurrency market is generally unregulated.
The crypto exchange has promised to act more responsibly by ensuring their current and future adverts contain full disclosures. In a statement, an investment and marketing executive, Susanah Streeter noted that regulators had become warier of the risks associated with investing in cryptos. She further stated cryptos were unpredictable, thanks to the ever-shifting rules of the game. Last week’s Bitcoin selloff is a classic example. The panic sale came after American and Chinese authorities moved in to tighten regulation on cryptos and the tax compliance on the same. Last week’s sell off was a major blow to the crytpocurrency market that appeared to be thriving for sometime.
Patrick is an accounting & economics graduate, a Cryptocurrency enthusiast, and a Blockchain technology fanatic. When not crafting informative pieces on any of the above subjects, he will be researching on how the Blockchain technology can transform the world, particularly the financial space.