In an announcement published this Wednesday (21), the Advertising Standards Authority of the United Kingdom (ASA) has banned a commercial from the broker Crypto.com about NFTs.
According to the text, the brokerage is “has not illustrated the risks of investing in NFTs”like “I didn’t make that clear [o serviço] has fees”🇧🇷
In addition to Crypto.com, two other NFT commercials were banned by the ASA on the same day. One of them is from Turtle United, the second from FC Barcelona, the famous football club.
The allegations are similar and focus on a lack of warning about the risks of these investments and hidden costs such as minting such NFTs.
Companies do not believe that NFTs are financial products
Like cryptocurrencies, NFTs also experience large price swings, which can attract the attention of speculators. However, the companies mentioned above disagree.
In response to the ASA, Crypto.com stated that the NFTs available on its platform are art and sports collectibles. That is, just like the famous physical figurines of the World Cup, which only have collector’s value.
Barcelona’s reaction, also with the banned commercial, was similar. Suppose the “Non-Fungible Tokens (NFT) Were Not Financial Products”argues that the FCA has not limited its activities and that “purchasing an NFT cannot be considered an investment”🇧🇷
In any case, the ASA has decided that the commercial advertisements of the three companies may no longer be shown to the public.
“The ad should not appear again in its current format”writes the ASA. “We told the […] that your ads should make clear the risks of NFTs, stating that they are an unregulated cryptocurrency and their value can fall as well as rise. They are also not allowed to omit relevant information about fees and charges on their platform and NFT ownership restrictions.
Finally, it is worth remembering that the United Kingdom is one of the strictest countries with cryptocurrencies, especially with advertising. The same goes for influencers promoting financial products.
Source: Live Coins
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
