Britain’s Advertising Standards Authority has issued enforcement notices to more than 50 cryptocurrency firms, which could be sanctioned if they don’t clean up their act. Regulators have issued repeated warnings about ‘misleading’ and ‘irresponsible’ crypto ads, which have become common place online, as well as on some public transport networks. The ASA described the issue as ‘a red alert priority’ on Tuesday, with the regulator working closely with the Financial Conduct Authority and having already taken action to ban several crypto ads. It told the 50-plus firms to review their crypto ads and ‘ensure they understand and are complying’ with advertising rules so that consumers are treated fairly. At the start of the year, a plan was set out to address misleading crypto-assets promotions and bring them into line with other financial advertising. ASA rules state that advertisers should clearly state that cryptocurrencies are unregulated in the UK and that the value of investments are variable and can go down. They also must not state or imply that investment decisions are ‘trivial, simple, easy or suitable for anyone’, or manufacture ‘FOMO’ by implying a sense of urgency to buy. The ASA said its compliance team will conduct follow-up monitoring of the firms concerned, and if problem ads persist after 2 May it will take ‘targeted enforcement action to ensure a level playing field’.

Past performance is not a reliable guide to the future. The value of investments and the income from them can go down as well as up. The value of tax reliefs depend upon individual circumstances and tax rules may change. The FCA does not regulate tax advice. This newsletter is provided strictly for general consideration only and is based on our understanding of law and HM Revenue & Customs practice as of March 2022 and the contents of the Finance Bill. No action must be taken or refrained from based on its contents alone. Accordingly, no responsibility can be assumed for any loss occasioned in connection with the content hereof and any such action or inaction. Professional advice is necessary for every case.