If crypto regulation isn’t hard enough, a particularly intriguing area to navigate is the question of crypto advertising and commerce. Across the Atlantic, this problem has been making noise for quite some time. Now, new information has put the ethics of crypto advertising under a brighter spotlight.
The numbers are bonder
An investigation into UK newspaper crypto advertising Guardians shows that crypto companies are targeting Londoners and beating records for the number of ads they place in public transport areas.
Guardiansreported by stated,
“Profiles obtained by the Guardian under the Freedom of Information Act show that TfL services displayed 39,560 cryptocurrency advertisements from 13 companies in the six months between April and September 2021.”
Some of these ads belong to crypto exchanges eToro, Crypto.com, and Luno, as well as a Musk-inspired meme.
Political leaders against the move have emphasized the reckless investment choices that advertising can trigger. Some also want a ban on such ads, citing the appeal of unregulated cryptocurrencies during times of severe economic stress around the world.
Something you should know
This is a far cry from the UK’s first encounter with crypto advertising. To refresh your memory, in 2021, American reality TV star Kim Kardashian promoted a cryptocurrency token on her massive social media. Soon after, Charles Randell, the chairman of the UK’s Financial Conduct Authority, took note of the incident unsettlingly.
At the end of 2021, UK side Arsenal are also staring at the barrel of regulation. The UK’s Advertising Standards Authority [ASA] clarified that the group’s “fan tokens”-related ads violated the team’s code by reportedly not providing enough information about crypto investment risks.
Furthermore, the director of the ASA, Miles Lockwood, has called cryptocurrencies a “red flag priority issue” for the watchdog. On that note, it looks like 2022 will bring more complaints and investigations from the agency, as crypto adoption grows worldwide.
The lords say now
The Guardian’s investigation into crypto advertisements comes after the UK’s Lords Economic Affairs Commission reported that it was unconvinced of the value of CBDCs.
Despite receiving input from Bank of England and Treasury officials, the committee is concerned about the “far-reaching consequences” and “significant risks” of CBDCs. In particular, it cites the possibilities of state surveillance, financial instability, central bank domination and the increased risk of failure that others could exploit.