UK bans Coinbase ads implying crypto can ease cost of living concerns

The UK's advertising watchdog has banned adverts from one of the world's biggest cryptocurrency firms which it said implied crypto could ease people's cost of living concerns.

People complained to the Advertising Standards Authority (ASA) after a series of Coinbase ads in August depicted the UK in various states of disrepair alongside a satirical slogan and the exchange's logo.

The ASA upheld the complaints and banned the adverts, finding they "trivialised the risks of cryptocurrency", which is largely unregulated in the UK.

Coinbase said it disagreed with the watchdog's decision.

"While we respect the ASA's decision, we fundamentally disagree with the characterisation of a campaign that critically reflects widely reported economic conditions as socially irresponsible," it said in a statement.

"The advert was intended to provoke discussion about the state of the financial system and the need to consider better futures, not to offer simplistic solutions or minimise risk."

As well as three posters, there was a video ad which depicted people and businesses in hardship while characters sang a satirical song about everything being "just fine".

Among scenes shown to viewers were a family home "in a state of disrepair", a high street with closed shops "littered with binbags and rats" and a supermarket containing signs highlighting price increases, the watchdog said.

Meanwhile, the ad's satirical sentiment was later reiterated with the slogan "if everything's fine don't change anything" appearing alongside Coinbase's logo.

The ASA said 35 people complained about this or accompanying adverts, suggesting they were "irresponsible" and trivialising the risks of crypto investments.

It upheld these complaints in its decision published on Wednesday.

"By presenting the country as failing in areas such as the cost of living and home ownership, the ads implied to consumers that they should make a financial change," it said.

The pairing of the slogan and the logo also implied Coinbase "could be part of the solution to the financial problems stated in the ads".

The Financial Conduct Authority has previously warned people considering investing in cryptocurrency they should be "prepared to lose all their money" if its value collapses.

It is not the first time the UK's ad regulator has clamped down on crypto adverts.

The ASA has previously voiced concerns about cryptocurrency promotions which do not sufficiently make clear the risks of investing.

Alongside investigating and banning some offending adverts, it has warned digital assets, while growing in popularity, remain "complex" and "volatile".

It says adverts for crypto products must make clear they are not regulated by the FCA and potential investors can lose money without any recourse for getting it back.

Responding to the ASA's decision on Wednesday, Coinbase said it recognised digital assets were "not a panacea".

But the US crypto exchange maintained it believed "their responsible adoption can play a constructive role in a more efficient and freer financial system".

"Coinbase remains committed to authentic, thought-provoking communication and to operating responsibly within the UK's regulatory framework," it said.

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