Two ads for cryptocurrencies appearing within apps were banned by UK advertising regulator the Advertising Standards Authority (ASA).

According to the watchdog, the ads from cryptocurrency exchange crypto.com were accused of being “misleading” and “irresponsible”.

The two adverts appeared within two different apps. The first was seen in the Daily Mail app on September 1, 2021, and featured text stating: “Buy Bitcoin with credit card instantly.”

The second ad was spotted in the Love Balls app, an all-ages puzzle game, on July 30, 2021. This one included text: “Earn up to 3.5% p.a.” According to the ASA, the number in the text increased to “8.5%”.

The ASA made its decision to ban both adverts over claims they misled their audience by failing to illustrate the risk of the investment, and were irresponsible by taking advantage of consumers’ inexperience or credulity.

In addition, the first ad was deemed misleading because it failed to make clear limitations to purchasing cryptocurrency with a credit card.

The second ad’s claim that purchasers could “earn up to 8.5%” was deemed misleading because the basis for calculating the earning forecast had not been made clear; and could be substantiated.

After the ASA voiced its concerns, Forisgfs UK Ltd, the company behind crypto.com, said it had voluntarily removed the ads. In addition, they claimed to have enhanced the operational oversight of UK advertising and were drafting a new UK marketing policy that included the FCA’s Treating Customers Fairly outcomes for customer communications.

According to crypto.com, both ads directed users to the company’s app, which warned them of the risks involved in investing in cryptocurrencies.

The ASA ordered Forisgfs UK Ltd not include the ads in the complained of form, and to ensure that future ads made sufficiently clear that the value of investments in cryptocurrency was variable and unregulated.

“We told them to ensure that their future marketing communications did not irresponsibly take advantage of consumers’ lack of experience or credulity by irresponsibly encouraging investing in cryptocurrency using a credit card, and by not making clear that CGT was not due in some circumstances on cryptocurrency profits,” a statement added.

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This is not the first time that UK regulatory bodies have attempted to rein in cryptocurrency groups. A major exchange, Binance, was banned from operating in the UK by the Financial Conduct Authority (FCA) in summer last year.

The decision came after the regulator began requiring cryptocurrency firms to register their services amid claims that many companies are failing to meet anti-money laundering rules.

In addition, the ASA banned another seven adverts in December last year, including those from cryptocurrency exchanges and trading platforms, as well as one from pizza delivery chain Papa John’s, which offered a “free Bitcoin worth £10”.

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