Crypto Ads Guide Will Be Re-examined by The Irish Advertising Regulator

Government organizations are attempting to bring order to what has been considered a mostly unregulated business as the global popularity of cryptocurrencies explodes. In furtherance of similar actions, the Irish advertising watchdog has announced preparations to evaluate the legislation governing crypto ads.

The Advertising Standards Authority of Ireland (ASAI) made the decision in response to an increase in the number of ads promoting crypto businesses such as Floki, as well as complaints about the lack of clarity in those ads about the potential risks of investing in crypto, according to the Irish Independent. A spokesperson for the regulator explained that:

“The ASAI is considering reviewing whether additional rules and/or guidance is required in light of the emerging trend of cryptocurrency business advertisements. (…) The ASAI is aware of concerns about consumer knowledge of cryptocurrencies. As well as the general rules on truthfulness, honesty and substantiation, the ASAI code contains rules related to financial advertising.”

These laws warn advertising from exploiting client inexperience and require them to explain that their investments are risky and can go either way up or down. Following the completion of the agency’s review, one of two things will happen. Either the industry guidelines on the ASAI code will be updated, or the code itself may change.

In February, the ASAI stepped in support of a complaint claiming that an advertisement promoting the cryptocurrency Floki Inu (FLOKI) failed to provide a warning concerning the coin’s unstable value. As a result, the corporation was forced to withdraw the advertisement.

Crypto Ads In Other Countries

Earlier in November, the FLOKI ad campaign was the subject of an investigation by the Advertising Standards Authority (ASA) in the United Kingdom, following the placement of a series of advertisements on public transportation in London.

It is worth mentioning that the UK’s advertising regulator has been harsher on crypto ads than the ASAI. It has specifically ordered over 50 cryptocurrency businesses to evaluate their advertisements and ensure they comply with the guidelines. If they do not address the “misleading advertisements” by May 2, they will risk-targeted punishment.

Meanwhile, Spain was starting to officially restrict the advertising of Bitcoin (BTC) and other cryptocurrencies, with the regulations going into place in February. The revelation followed the announcement of over 20,000 new Bitcoin ATMs across the country.

While the European Commission was in session on the other side of the planet, Singapore attempted to limit cryptocurrency operators’ capacity to offer their services to the general public in the country.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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