Why the UK and Singapore are cracking down on misleading crypto ads
Regulators in the UK and Singapore are cracking down on crypto ads in their countries.
The UK government announced that to protect citizens, it is strengthening the rules on misleading advertisements in the country, especially ads related to cryptocurrencies.
In Singapore, regulators have banned public advertisements of crypto services. The Monetary Authority of Singapore (MAS) said crypto service providers could only advertise on their websites and personal social media accounts.
What’s the issue? Misleading advertisements have been a topic of discussion in crypto communities for some time. Like the UK regulators, critics believe that some crypto platforms purposely downplay the risks to lure unsuspecting investors.
- Cryptocurrencies like Bitcoin, Ethereum, etc. are highly volatile, which leaves many potential investors with questions.
- The problem is that rather than explaining how crypto works — which, understandably, isn’t the goal of an ad — some advertisers phrase high rewards as a guarantee. This isn’t always the case.
- Take this Into the Cryptoverse episode for instance. The investor has experienced crypto’s volatile nature.
How to recognise false ads
Ads have a habit of exaggerating the truth (e.g. Red Bull doesn’t give you wings 🙊). For investments and retail products, it is important to research the team behind them. If you trust the team, you can probably trust their product.
