UK advertising regulators ban Crypto.com and Turtle United's NFT ads

theblock.co

The  NFT ads of Crypto.com and a project called Turtle United were banned by the UK advertising regulator for failing to disclose the risks involved in investing in NFTs and correctly identifying transaction fees. 

 The  Standards Authority's ruling applied to both Crypto.com and Turtle United's paid Facebook ads since July. 

 Crypto.com contested the decision regarding its NFT marketplace, confirming that the announcement was no longer published and claiming that the company did not believe that the NFTs available on its platform, which included the work of artists and sports collectors , were monetary. nature

 . It said that because NFTs were left out of the Treasury's recent crypto consultation, it believed they were exempt from the financial rules of the ASA Code and did not need to clarify that profits from cryptocurrencies were subject to capital gains tax. tax and that they are unregulated 

 The ASA, on the other hand, upheld the appeal. 

 Unclear 

  ASA had a similar concern about the failure to respond to Turtle United's complaint. The regulator said  Turtle United failed to explain that past performance or experience may not provide guidance for the future. The project claimed it would "deliver a lot of value to its owners", which meant the NFT was guaranteed significant value, the ASA said.

 The current base price of Turtle United is 0.02 ETH, or about $24, according to OpenSea. The mint price was  0.2 ETH plus transaction fees. 

 The Block reached out to Turtle United for comment, but did not respond by press time. 

 The ruling is just a  slap in the face for both companies, who were told they would no longer run ads in the same format. Earlier this year, the ASA announced that it would  focus more on crypto advertising and introduce new protections for consumers. 

 In January,  the ASA reprimanded Crypto.com for two advertisements that "failed to illustrate the risks of the investment, were irresponsible and took advantage of the inexperience or credulity of consumers."

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Source: theblock.co