The Financial Conduct Authority (FCA) in the UK banned a highly controversial advert by Coinbase after the regulators found the ad not meeting the strict financial promotion rules, calling it “irresponsible” and saying it “trivialized the risks of cryptocurrency.”
The ad used a sarcastic tone to represent the people trying to stay optimistic, despite their homes being in despair. The two-minute video shows people singing, “Everything is just fine; everything is grand,” even when their homes fall into a state of disrepair and suffer a power cut.
Meanwhile, in stark contrast, Britons are seen gaily dancing through the streets, unconcerned by the overflowing refuse bins and the scurrying rats.
The clip ends with the tagline, “If everything’s fine, don’t change anything,” and then it is replaced with the logo of the cryptocurrency exchange Coinbase.
The headline proves how regulators are controlling the way crypto is advertised, just like they do for risky investments. In the UK, the government still views crypto with strong suspicion.
ASA rules the ads show ‘crypto’ as a lifeline
According to reports by the Advertising Standards Authority (ASA), the advert suggested that using Coinbase could be an alternative to the financial concerns of living costs and other causes of survival, completely neglecting the risks involved in cryptocurrencies.
Three posters from Coinbase were also banned by the ASA, with content “Home ownership out of reach,” as well as “real wages stuck in 2008” and “eggs now out of budget.” Another one reads “Everything is fine” repeatedly, with the bottom of the poster saying, “If everything’s fine, don’t change anything” right next to the Coinbase logo.
Coinbase defends campaign
Coinbase responded, saying, “While we respect the ASA’s decision, we fundamentally disagree with the characterization of a campaign that critically reflects widely reported economic conditions as socially irresponsible.”
They also opined that the advert was intended to provoke ‘the need of the hour’ discussions about the state of the financial system and the importance of envisioning improved future options.
Presales are booming, and the broader crypto market is showing slow resilience and optimism. Even though Coinbase’s advertisements were banned in the UK, a development that could normally hurt sentiment, investors largely ignored it. Instead, the crypto market is only booming.
