On 6 October 2023, the Advertising Standards Authority (ASA) announced that, following the introduction of new rules by the FCA, the ASA will no longer regulate technical claims in ads for cryptoassets in non-broadcast media.
With effect from 8 October 2023, the FCA has taken over the regulation of ads for ‘qualifying cryptoassets and utility (fan) tokens, and introduced new rules.
The rules will apply to all firms marketing qualifying cryptoassets to UK consumers, regardless of which country they are based in, or the technology used.
As a result, the ASA will no longer regulate non-broadcast ads for qualifying cryptoassets where the advertising issue relates to the technical aspects of these products. Complaints about technical aspects in non-broadcast ads will be referred to the FCA. The Committee of Advertising Practice (known as ‘CAP’) has reflected the remit change in its advice and guidance.
The ASA also flags in its announcement that there is a clear separation between ads for legal cryptoasset investments and illegitimate scam ads referring to cryptoassets that link to fraudulent content. On the latter, the ASA plans to continue to take action where it can to disrupt online scams through its Scam Ad Alert system.