Digital Marketing is all about pushing boundaries and finding what works. New and developing fields are the perfect testing ground for new ideas in the Marketing space. Cryptocurrency and digital marketing have gone hand in hand through recent years. Indeed, crypto concepts such as NFTs rely almost exclusively on digital marketing to thrive.
Yet as the UK Government begins to push new, stricter regulations regarding cryptocurrency marketing, it is decidedly time to reconsider your approach. The old ways may soon find you in considerable legal trouble. Learn why with the help of the experts at Wildfire Marketing.
New Cryptocurrency Advertising Regulations
On the 18th of January, HM Treasury announced the government’s plans to strengthen the existing rules on crypto-asset advertisements to protect consumers from misleading claims. The HM Treasury argues that, despite public ownership of crypto assets increasing dramatically in recent years, consumer knowledge of the risks inherent to the technology continues to decrease.
Under the government’s current plan, crypto-assets would qualify under the same rules and regulations laid out by the FCA that govern the promotion of financial assets such as stocks and shares.
Why are Cryptocurrency rules changing?
Regulatory bodies will eventually draw a line in the sand when boundaries are pushed. The FCA has directly condemned and sanctioned high-profile crypto-asset advertising campaigns for misleading consumers in recent months. For example, the ASA recently found the football club Arsenal to have broken advertising rules on posts relating to their “Fan Tokens”. The ASA argued that Arsenal had not clarified the inherent risks of crypto assets. Their primary example was a post where Arsenal encouraged users to sign up for the fan tokens to vote on their favourite song on Facebook.
The crypto industry is still new to the slow cogs of regulatory bodies. Rules and guidelines were bound to be introduced and enforced eventually. Still, recent controversies alongside an explosion of popularity have pushed this to the forefront of regulatory bodies’ minds.
How to Keep Your Cryptocurrency Ads Safe
So far, no direct regulation on cryptocurrency marketing has been introduced, but this is close to changing. So far, the government has raised three key points.
First, crypto ads must make clear the risks inherent to the technology. Assets can be lost or depreciate in value, make sure this is clear in your advertising.
Second, the government plans to introduce crypto assets into the same regulations that govern financial assets such as stocks, bonds and shares. Researching the FCA rules that govern these financial assets now, and aiming to adhere to them, can help avoid headaches in the future.
Finally, the government understands that this is a rapidly evolving market. So don’t expect products at the forefront of the crypto space, such as DAOs, to be regulated harshly anytime soon. Indeed, in the HM Treasury press release, the government explicitly stated that NFTs would not be part of the new regulations.
As you can see, digital marketing in the cryptocurrency industry is soon to change. To keep up with the latest regulations and guidelines in the space, trust the number one SEO Agency in Leeds – Wildfire Marketing. Our digital marketing experts keep their fingers on the pulse of the digital marketing world, ensuring you fully comply with the latest regulations. Learn more about our services with more of our guides, or contact us today to ignite your Digital Marketing.