A UK regulator has banned advertisements for Coinbase, the largest cryptocurrency exchange in the US, for misrepresenting risks.
According to The Guardian, the UK Advertising Standards Authority (ASA) has banned a number of Coinbase advertisements.
Coinbase had been running a series of video advertising campaigns in the country since August.
The UK regulator said Coinbase’s advertisements were “irresponsible” and “downplayed the risks of cryptocurrencies”.
ASA also noted that the advertising campaign gave the impression that using Coinbase could be an alternative way to cope with cost of living pressures.
In addition to the ASA, the UK Financial Conduct Authority (FCA) also issued a statement. Regarding cryptocurrency investments, the FCA warned that “most crypto assets are largely unregulated and high-risk, and investors could lose all their money.”
Coinbase UK immediately objected to the advertising ban, stating: “While we respect the regulator’s decision, we absolutely cannot accept characterizing a campaign that critically reflects widely reported economic conditions as socially irresponsible. The ads were not intended to offer a simple solution or minimize risks, but to spark discussion about the state of the financial system and the need to think about a better future.”
Under current UK regulations, cryptocurrency advertisements must include clear warnings about investment risks.
*This is not investment advice.