UK Bans Crypto.com Ads as Regulator Activity Spikes Globally
It’s been a busy start to the year for regulators across the globe. Late last year, the Bank of England talked of a need for a global framework to regulate the crypto market. In recent weeks, we’ve seen Binance pull out of Singapore and fall on the wrong side of the Ontario Securities Commission. Last week, Indian tax authorities were also in action, searching 6 crypto exchanges on the suspicion of tax evasion.
On Tuesday, news hit the wires of South Korea’s Naver and Kakao also pulling out of Singapore. Overnight, the news didn’t get any better, with the Kosovo government banning all crypto mining, effective immediately.
UK Regulators Take Action against Crypto.com
With regulatory activity spiking at the turn of the year, news hit the wires overnight of the UK banning 2 Crypto.com (CRO) ads. The UK’s Advertising Standards Authority (ASA) reportedly responded to a complaint.
Crypto.com is a crypto platform designed to support the trading of all cryptos and all crypto-related services. Not just a trading platform, Crypto.com also allows users to earn, spend, and borrow against cryptos
According to the ASA, an ad on 1st September 2021, included the wording “Buy Bitcoin with credit card instantly”. The 2nd ad, on 30th July 2021, advertised “up to 3.5% pa”. The number in the advert increased to “8.5%”.
According to the ASA ruling, the ads failed to highlight the risk of investment, while also taking “advantage of consumers’ inexperience and credulity”. Crypto.com removed the ads upon learning of the ASA’s concerns.
The ASA’s move comes off the back of calls by UK members of Parliament (MPs) for the UK government to crack down on the crypto industry. On Tuesday, news had hit the wires of MPs in the UK asking for tougher regulations on cryptos and NFTs.
The call by MPs reportedly comes in response to football clubs and other influencers promoting crypto projects.
Crypto.com addressed the ASA comments and ad bans with the following statements:
We believe building a fully regulated industry is the best way to accelerate the world’s transition to cryptocurrency, which has long been our mission. Engaging regulators to ensure compliance and building trust remain Crypto.com’s highest priorities. Not only did we remove both ads immediately upon engaging with the ASA, but we have voluntarily pledged to go above and beyond the ASA’s rules by complying with FCA’s Treating Customers Fairly outcomes 2 and 3 for customer communications, on an ongoing basis.
We appreciate the collaborative dialogue and engagement from the ASA regarding advertising in the UK in this relatively new industry, and remain committed to working with them and regulators around the world to ensure all of our activities are compliant with the most recent regulatory guidelines.
Crypto.com and Sport
In December, Crypto.com purchased Super Bowl 2022 airtime. The move followed Crypto.com’s sponsorship of professional women’s football team Angel City FC.
Crypto.com’s move into sports is aligned with its ambitions to become a top 20 consumer brand within the next 3-5 years. Other Crypto.com sponsorships have included South America’s Conmebol, French football team PSG, the Coppa Italia, and Formula 1.
Crypto.com Coin Price Action
On Tuesday, Crypto.com Coin fell by 1.30% to end the day at $0.5675 versus a November ATH $0.9732. In spite of the pullback from November’s high, Crypto.com Coin surged by 794% in 2021.
At the time of writing, Crypto.com Coin was up by 0.60% to $0.5545. For the bulls, the first key resistance level will be December’s high $0.7179. A breakout from $0.71 levels would bring November’s ATH and $1.00 levels into play.