The UK’s Advertising Standards Authority (ASA) has issued warnings to at least 50 crypto companies which may have breached the country’s advertising code.
The ASA has warned the companies that they have until May 2 to make amends or face more serious action from relevant financial regulators, including the Financial Conduct Authority (FCA) which has the power to revoke licenses.
For starters, the ASA expects companies to make it clear that many of the assets advertised are not regulated under UK law and pose a significant risk to consumers.
This echoes a previous proposal to only allow advertisement to target high-earners who have a provable and steady income, but some objected that this would unfairly ostracize less wealthy investors in the long-turn.
The ASA confirmed that it has already banned several ads but chose to go with a “red alert” notice instead of clamping down on the ads published and transmitted by the companies.
Lack of compliance would risk the operational viability of each of the warned companies on the watchdog’s list.
Presently, the FCA is looking to regulate the sector so that it offers better consumer protection in the long-term.
Many of the companies that apply for a license in the UK are turned down. According to one recent estimate, 90% of all applicants are turned down as they are found unsuitable.
The ASA has previously banned ads from the London Underground and has targeted high-profile advertisement campaigns by established crypto exchanges. ASA recently banned two Crypto.com ads.