UK Advertising Regulator Bans Crypto.com, Turtle United NFT Promotions On Facebook
- The UK’s advertising watchdog disapproved of NFT advertisements by Crypto.com and Turtle United for failing to disclose the dangers of investing in NFTs and for failing to adequately depict transaction costs.
- The ruling related to sponsored Facebook advertisements for both companies starting in July.
- Crypto.com acknowledged the ad was taken down and responded to the judgment about its NFT marketplace by saying that it did not consider the NFTs available on its site, which included artwork and sports memorabilia, to be of a financial nature.
The UK’s Advertising Standards Authority (ASA) has rejected ads for non-fungible token (NFT) promotions by Turtle United and Crypto.com.
The ruling relates to paid Facebook advertisements that both companies placed in July. The ASA has told both companies not to run the adverts in the same manner again, even though its decision is just a warning.
According to the ASA’s December 21 decision on Foris DAX Global and Turtle United NFT, both companies failed to completely disclose transaction fees or appropriately describe the dangers of participating in NFTs.
Crypto.com acknowledged the ad was taken down and responded to the judgment about its NFT marketplace by saying that it did not consider the NFTs available on its site, which included artwork and sports memorabilia, to be financial.
It claimed that since NFTs were not included in recent Treasury consultation papers on cryptocurrencies, they would be exempt from the ASA’s code’s financial requirements and would not be required to disclose that cryptocurrency profits were subject to capital gains tax and that they were unregulated.
The regulator found that Turtle United failed to clarify that past performance or experience does not always portend future results since the firm did not react to the ASA’s complaint. The ASA further alleged that Turtle United implied that the NFTs had a high guaranteed value by claiming to provide a lot of value for its holders. According to OpenSea statistics, Turtle United’s floor price is now about 0.015 ETH, and its mint price is marketed as being 0.2 ETH plus transaction costs.
The ASA previously declared its desire to tighten the regulation of crypto advertising and include new consumer safeguards. It also censured Crypto.com in January for two advertisements that failed to illustrate the risks of the investment, were irresponsible, and took advantage of consumers’ inexperience or credulity.
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