The UK’s advertising watchdog has revealed it is planning a crackdown on cryptocurrency investment ads.
The news comes at the same time as new research points that around 12% of UK population over 18 have bought cryto assets with a staggering 20% admitting that they did not know what they were buying when they bought it.
The Advertising Standards Authority (ASA) has said that ensuring marketing campaigns for unregulated digital currencies such as Bitcoin and Ethereum make the coins’ risky nature clear to retail investors is a “key priority”.
The concern is that too many people are buying blind without knowing what they’re doing and are being influenced to invest by rising prices and other people encouraging them to have a go,” Greg B Davies, PhD, Head of Behavioural Finance, Oxford Risk.
The ASA told the UK’s Evening Standard it now plans to intensify “proactive monitoring and enforcement” of crypto advertising. The watchdog is to scope out additional guidance for companies in the coming weeks, and is “considering whether further action is needed” around social media influencers promoting investments without disclosing enough information about the risks.
In a separate study published yesterday, behavioural finance experts Oxford Risk revealed that nearly two out of five (36%) UK retail cryptocurrency investors admit their understanding of the sector was poor or non-existent when they first bought…