On 3 October 2024, the Broadcast Committee of Advertising Practice (BCAP) published a new rule explicitly banning advertisements for certain types of cryptoasset products from being broadcast to mainstream, non-specialist audiences.
BCAP explains that these products were already subject to such a restriction under BCAP Code rule 14.5.4, as the products are not regulated by the Financial Conduct Authority (FCA). However, in October 2023 the FCA became responsible for regulating the advertising of fungible and transferable cryptoassets, a category which includes cryptocurrencies and utility (fan) tokens. These ‘qualifying cryptoassets’ were categorised as Restricted Mass Market Investments, meaning they can be marketed to the public subject to restrictions that recognise their risk level and require investors to undergo pre-vetting.
By adding this category explicitly to the Code, BCAP intends to maintain the existing restriction of such products to appropriate specialised broadcast audiences, whilst at the same time adding more precision to the rule to acknowledge this broad and widespread category of investments that did not exist at the time the rule was created, and reminding broadcasters of the statutory restrictions that apply to advertising for them.
BCAP notes that cryptoassets that are not included under the ‘qualifying cryptoassets’ category will continue to be caught under rule 14.5.4, which covers unregulated investments more generally. BCAP ran a public consultation on the proposed new rule, which is intended to add clarity for industry and consumers without altering existing policy on the advertising of these products. It did not receive any responses, so the change has now been approved by Ofcom and will take immediate effect.