The UK’s advertising regulatory body, the Advertising Standards Authority (ADA), has banned Facebook promotion by Crypto.com and Turtle United targeted at selling NFTs.
According to the regulatory body, the promotions neither spell out the risk of investing in NFT nor the transaction fees for the purchase. The ban will affect the ads that were initiated in July this year.
In response to the ban, Crypto.com said that while the promotion was not available again, it was designed to promote the company and not NFTs. The crypto exchange added that “it would be unreasonable to request that the specific ad include limitations or qualifications regarding the risk of investing in NFTs.”
Crypto.com further explained that when a user decides to list or mint an NFT on its NFT marketplace, they are shown the fees their transactions will incur before proceeding.
Turtle United NFTs
The ASA also complained about Turtle United, an NFT project, which didn’t reply to the concerns of the ASA. Turtle United didn’t make clarifications that the previous performance of NFT transactions does not guarantee future results for users.
This ban means that Crypto.com and Turtle United will not run other ads targeted at UK citizens similarly. As part of the responsibility of the ASA, there have been reports from the regulator that it would develop structures for the safety of users in the crypto industry and crypto advertising processes.
Crypto.com suffered similar reproval from the ASA at the beginning of 2022 when the crypto exchange ran ads that: didn’t explain the investment risk to users, made false claims of potential earnings, placed no clear limitations on purchasing cryptocurrency with a credit card, and other reasons.