The Advertising Standards Agency (ASA) has banned adverts by cryptocurrency trading platform Coinbase due to “irresponsible” messaging.
The regulator said it had received 35 complaints over a video on demand (VOD) and three posters promoting the platform which stated that they trivialised the risks associated with trading cryptocurrency and inappropriately suggesting that it could ease the cost-of-living crisis.
The VOD featured a satirical, upbeat song with adults singing about their everyday concerns such as losing their job or being unable to own their home.
Despite each issue, the advert showed them dancing and singing “everything is just fine.”
The advert ended with a caption stating, “if everything’s fine, don’t change anything”, which was replaced with the Coinbase logo when the song ended.
The posters carried a similar message with the same text and logos.
Responding to the complaints, Coinbase told the ASA that it did not believe the adverts were irresponsible.
The company highlighted that it is the largest cryptocurrency exchange in the UK registered with the Financial Conduct Authority (FCA).
Coinbase claimed that the adverts were understood by potential customers, adding that awareness about cryptocurrency has increased in recent years according to research by the FCA, while some of the concerns the ASA had raised were now less relevant.
The firm also pointed out to the regulator that the adverts were purposely exaggerated for entertainment purposes and did not encourage socially irresponsible behaviour as they did not contain any calls to action.
Coinbase said it did not believe a reasonable consumer would understand the final phrase to mean that cryptocurrency could solve individual financial hardship, adding that the Coinbase logo was included in the ads to inform consumers that it wanted to paint itself as a brand that identified issues with the current financial system and wanted to explore alternative solutions.
Responding to claims that the advertising had trivialised the risks of cryptocurrency,
Coinbase said that its onboarding process includes an appropriateness assessment and 24-hour cooling off period while risk warnings are displayed on its website and app before and after consumers sign up to the service.
The ASA upheld the complaints, stating that while the general public is becoming more familiar with cryptocurrency, the majority of consumers are still unlikely to have an in-depth understanding of how cryptocurrencies works.
Whilst the FCA research cited by Coinbase suggested that 93 per cent of UK adults have heard of crypto assets, the ASA pointed out that only 12 per cent own them.
“Because the ads implied that cryptocurrency could be an alternative to the prevalent financial concerns associated with the cost of living, we considered that they trivialised the risks associated with cryptocurrency investment,” the ASA said. “We therefore concluded the ads were irresponsible.”
