The study analysed data from the ASA and found that the most common types of advertising breaches were misleading advertising, financial products, qualification and social responsibility, with 44, 29, 16 and 15 code breaches respectively.
The cryptocurrency exchange app Crypto.com was found to have breached the most advertising guidelines, with a total of 13 code breaches. Six of the breach types were due to ‘misleading advertising' and three ‘financial products' violations.
One issue for regulators was Crypto.com's statement "buy bitcoin with credit card instantly", which failed to warn about the potential for higher interest rates, advance fees and the impact to an individual's credit rating.
Advertising Standards Authority rules crypto ads 'misleading'
The second crypto company that has broken the most rules is Coinbase, with 12 total code breaches. Six of them were for ‘misleading advertising', followed by three ‘financial products' violations.
A Coinbase advertisement with text saying "Buy bitcoin in five minutes with as little as £25" and "simple and easy to use" was found to be irresponsible and inappropriate use for the marketing of financial products.
The ASA claimed this oversimplified the act of investing in crypto, suggesting that it was not a complex and sophisticated investment where values can fall as easily as they can rise, while also failing to mention that CGT would be due on any profits.
Crypto.com and Coinbase are just two of the cohort of cryptocurrency companies whose ads have been banned by the ASA on several occasions. The list also includes Luno Money, Coinfloor, Ziglu, Arsenal F.C. and eToro, among others.
The bans are a result of a concerted effort by the ASA to get cryptocurrency ads under control and properly regulated following a boom in crypto advertising in the UK.
According to the study, through these rulings the ASA hopes to create clarity and their expectations of crypto ads "so they can responsibly market their products to potential investors while preventing illegitimate scam ads from slipping through the gaps".