The UK Advertising Standards Authority has supported a complaint against the cryptocurrency exchange firm Coinfloor for posting bitcoin (BTC) ads to a regional news agency.
The ad, which was published in the Northamptonshire Telegraph on December 3, 2020, was seen as aimed at retirees, according to the applicant, who claimed the ads were misleading and socially irresponsible.
An ad titled “There is no point in keeping money in the bank …” and contained a photograph of a 63-year-old woman describing her decision to convert part of her pension into bitcoins. The pensioner in the picture said:
“More and more people are realizing the power of saving bitcoins … Today it makes no sense to keep it in a bank – interest rates are offensive. […] That is why when I retired, I invested a third in gold, a third in silver and the rest in bitcoin. ”
Even the alleged Coinfloor client pictured in the ad referred to Bitcoin’s widely cited reputation as digital gold.
“For me, Bitcoin is digital gold, and it allowed me to take steps to secure the money I already have … With Coinfloor Autobuy, it has never been easier to buy and store bitcoins …”
The statement is allegedly misleading, as it “does not explain the risks associated with investing in bitcoin, including the loss of capital, and that neither Coinfloor Ltd nor the general bitcoin market in the UK is regulated.”
A complaint about this was upheld, and ASA noted that Coinfloor did not adequately convey Bitcoin’s volatility.
The ad also claims to be misleading, as it “suggests that buying bitcoins is a good or safe way to invest your personal savings or pension.”
The complaint was also upheld in this connection, when ASA decided that Coinfloor presented Bitcoin investments as safer than they actually were.
ASA concluded that the ad should no longer be displayed in its current form. Any future announcements from Coinfloor should clarify the fact that Bitcoin investments may fall in value and mention that both Coinfloor Ltd and Bitcoin are not regulated in the UK and do not irresponsibly indicate that Bitcoin is a safe investment for savings or pensions. person.