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Bitcoin: the “irresponsible” posters seen in London banned by the regulator | Economic news

Advertising posters stating “it’s time to buy” Bitcoin have been banned by the Advertising Standards Authority (ASA).

Ads for cryptocurrency Luno platform were seen across the London Metro as well as in the buses of the capital in February.

They presented a cartoon image of a Bitcoin, next to the text that reads: “If you see Bitcoin on the subway, it’s time to buy.”

A representation of the Bitcoin virtual currency is seen in front of a stock chart in this illustration taken on November 19, 2020
Bitcoin hit a record high of $ 65,000 earlier this year

The ASA has received complaints that it failed to illustrate the risk of the investment and took advantage of the inexperience of consumers.

Luno told the regulator that the posters would no longer reappear and that future announcements would present an appropriate warning of the potential risks involved.

The rules governing advertisements for investments state that they must make it clear that their value could go down as well as up.

The ASA said: “We understood that investing in Bitcoin was complex, volatile and could expose investors to losses and considered that this contrasted with the impression given by the announcement, that the investment was straightforward. and conventional.

“We concluded that the ad irresponsibly suggested that engaging in a Bitcoin investment through Luno was straightforward and straightforward, especially since the audience it was directed to, the general public, was likely inexperienced in understanding cryptocurrencies.

The move comes in the wake of Bitcoin – which gained value earlier this year – which is experiencing increased volatility.

Bitcoin's price has been volatile
Bitcoin’s price has been volatile

It hit a record high of $ 65,000 (£ 45,891) in April, but has since been hit by fears of an industry crackdown in China as well as by the Tesla boss. The overthrow of Elon Musk of a decision allowing the electric car maker to accept cryptocurrency payments.

This prompted a sharp drop last week to around $ 30,000 (£ 21,180), although Bitcoin surged on Wednesday …

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This notice was published: 2021-05-26 11:07:00