The UK’s outlook on the digital asset industry is not very positive as the nation has clarified how crypto investments, such as Bitcoin, are very risky. The government had warned citizens from investing in the asset or stand a chance of losing all their capital as the assets are not protected by bodies within the country.
The nation’s stance might have influenced resident’s approach to cryptocurrencies. Not many British nationals have shown interest in investing in the digital assets, especially because of numerous scams and controversies surrounded around the asset. The country has rebounded its Bitcoin outlook based on an ad it prohibited based on some reasons. The firm responsible for the ad is Coinfloor, and it was created to encourage crypto investments.
ASA bans crypto-related ad
Coinfloor, a crypto exchange within the region, would have to remove its advertisement, which explained that Bitcoin was a suitable investment for pensioners. The government rejected the advertisement’s claim and said that it was irresponsible to advertise Bitcoin to pensioners.
The authorities responsible for the ban is the UK Advertising Standard Authority, responsible for regulating advertisements in the United Kingdom. ASA drew people’s attention to the advertisement published in Northamptonshire Telegraph in December that has a 63-year old testify how she invested into the digital asset with her pension.
While the 63-year-old’s testimony might not have been a reason for the ban, the regulator revealed how the ad encouraged people to not keep money in banks, which could mean that people should buy cryptocurrencies with all their money and keep the crypto like digital gold, according to the regulator. The ad explained that people shouldn’t keep money in their bank due to the low-interest rates, which was part of the pensioner’s testimony.
The ad explains how Bitcoin is a digital gold
The testifier explained that when she gets a pension, some parts of it are put into gold, some part into silver, and another into Bitcoin. The person also shared how she sees Bitcoin as digital gold and how it has helped her secure her money. ASA’s response was through a complaint someone had made regarding the advertisement, and the body investigated the alleged act.
The regulator said that the ad was misleading and irresponsible. The filing against the advertisement opined that the exchange had not thoroughly explained the risks associated with the investment class and has deceived pensioners into thinking the investment could save and secure their savings.
The watchdog felt that the ad was misleading as the ad promoted Bitcoin’s savings ability, which might make people think it doesn’t depreciate. In defense, the firm explained that it was a customer who testified and that the testimony wasn’t of its view.
The watchdog had failed to notice that it was a testimony rather than a traditional advertisement from the exchange. The regulator understands the risks involved in cryptocurrencies, being the reason for its move to ban the controversial ad. The body also explained that Coinfloor had not boldly shown the disclaimer and that the clause is not sufficient for countering the advertisement.
