Crypto.com and Coinbase violate the most advertising guidelines among rivals (NASDAQ:COIN)

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Cryptocurrency exchanges Crypto.com (CRO-USD) and Coinbase Global (NASDAQ: CURRENCY) broke the most advertising rules among its competitors, according to a recent report by Crypto Head, which analyzes banned ads in UK by the Advertising Standards Authority (“ASA”).

The report counted 13 ad code violations by Crypto.com (CRO-USD) and 12 by Coinbase (COIN), topping the list of 11 crypto-focused companies. As for the rest of the catalog: Arsenal FC committed 9 infringements, Luno Money (9), Coinfloor (7), Ziglu (6), Skrill (6), Coinburp (6), eToro (6), Exmo Exchange (6) and Payward/Kraken (6).

The most common type of advertising violation was “misleading advertising” with a total of 44 instances where this rule was violated, according to the report. This means advertisers were misleading the viewer by “either suggesting false things or omitting crucial information so the viewer could form a balanced opinion,” according to the report.

Advertising “financial products” was the second most common offense with 29 separate offences. In other words, “crypto announcements failed to mention the tax implications of investing in crypto, which is a violation of regulations as profits may be subject to capital gains tax. “, for example.

And the number of “qualifications” violations was 16. This type of violation refers to instances where marketing materials are required to state any limitations or qualifications of claims made in the ad.

Regarding Coinbase (COIN), in particular, its paid advertising on Facebook was banned on December 12, 2021 after the ASA discovered a total of 12 code violations. Crypto Head pointed to misleading ad text that read “£5 in #Bitcoin in 2010 would be worth over £100,000 in January 2021. Don’t miss the next decade – get started on Coinbase today.”

While a series of digital asset companies have taken steps to increase brand awareness and broaden the appeal of the emerging decentralized space to the public through a variety of marketing campaigns, regulators are voicing their concerns. concerns about the recent increase in crypto-related advertising.

Legislation evolving around digital asset markets is unclear and constantly criticized by industry players. As a result, the average Joe who does not have a good understanding of cryptography might be misled by these advertisements.

“For example, unlike most investment options, crypto assets are not protected by the UK’s Financial Conduct Authority (“FCA”), although people unfamiliar with cryptocurrencies may see a advertising and assume that they are also protected,” the report explains.

Some regulators, however, are taking action to protect consumer interests, including those in India, Singapore and the UK.

There are many crypto companies, especially in the past year, that have entered into sports sponsorship deals to improve consumer engagement. Crypto.com (CRO-USD) and blockchain platform Algorand (ALGO-USD) have partnered with FIFA ahead of this year’s World Cup tournament. In December 2021, crypto brokerage Voyager Digital (OTCQX:VYGVF) entered into a multi-year agreement with the National Women’s Soccer League to expand the league’s global marketing reach, in addition to providing players with direct financial support, training in crypto and rewards.

Previously (February 9), crypto companies got into Super Bowl advertising.

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