The British Advertising Standards Authority (ASA) has prohibited various advertisements from cryptocurrency companies such as Coinbase, Kraken, and eToro.
Papa John’s was one of the corporations whose advertisements were barred by the advertising watchdog. The pizza company first became identified with cryptocurrency as a result of “Bitcoin Pizza Day,” which marked the first commercial Bitcoin transaction.
Papa John’s collaborated with the cryptocurrency exchange Luno for the ad in question. Customers of Papa John’s would receive a discount code for £10 worth of Bitcoin when they signed up for Luno as part of that offer.
The ASA ruled that the advertisement was “irresponsible since it took advantage of consumers’ inexperience or skepticism and trivialized investing in cryptocurrencies.” Similar justifications were provided for the other advertising restrictions. According to the ASA, Coinbase’s statement that “£5 in Bitcoin in 2010 would be worth over £100,000 in January 2021” does not guarantee that the same will happen in the future.
This is not the first time the ASA has prohibited crypto advertisements. Last year, a BitMEX advertisement was banned for being deceptive. Earlier this month, many members of parliament urged that the word “investment” be removed from cryptocurrency advertisements.
Regulators’ grip on cryptocurrency enterprises is also tightening. The Financial Conduct Authority banned crypto derivatives in January, with some even advocating for an outright ban on crypto transactions.
Despite this, the demand for cryptocurrency investments in the United Kingdom remains significant. According to a survey published in June, more people will have invested in cryptocurrency than in equity by 2021.
