AFL partner Crypto.com accused of misleading UK advertising practices | Cryptocurrencies

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AFL’s crypto exchange partner Crypto.com has repeatedly breached UK Advertising Standards and has been accused of misleading and irresponsible behavior.

Rulings from the UK Advertising Standards Authority (Asa) may invite closer scrutiny of Crypto.com promotions in Australia.

A five-year partnership between the AFL and the Singapore-based exchange was announced in January 2022. Since then, Crypto.com has been promoted in AFL stadiums.

In December, Asa ruled that a local Crypto.com ad did not illustrate the risk of investing in non-fungible tokens (NFTs). He also found that the ad did not clearly state that charges would apply.

In response, Crypto.com challenged the decision and said the need to mention fees in the ad was irrelevant and would only confuse consumers.

Earlier in 2022, the regulator upheld rulings on two other adverts accused of exploiting consumer inexperience or credulity.

One of the ads said to buy bitcoin instantly with a credit card, which the regulator said took advantage of consumer inexperience and credulity by not specifying that tax could be paid on profits cryptocurrency and irresponsibly encouraging investing in cryptocurrency on a credit card.

Another ad told consumers they could earn up to 8.5%, which Asa considered misleading because the basis for calculating the earnings forecast had not been specified.

Crypto.com told the regulator that these ads were removed as soon as concerns were raised and its oversight process was strengthened.

It is not known if any of these advertisements were shown in the Australian market.

A Crypto.com spokesperson said the company is trusted by more than 70 million customers worldwide and leads the industry in regulatory compliance, security and privacy certifications.

The Australian Securities and Investments Commission (Asic) has called for a regulatory framework for cryptocurrency and crypto assets like NFTs to better protect consumers. While this is under development, a spokesperson said the rules regarding misleading and misleading behavior still apply to any type of crypto asset.

Any company that deceives or deceives in its advertising is breaking the law, the Asic spokesperson said.

The regulator sued BPS Financial in federal court in October over what Asic claims are misleading and misleading claims about crypto asset Qoin, and Block Earner in November for allegedly offering financial products without an Australian financial services license.

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The cases remain in court. BPS is expected to file its defense next month.

Dr Paul Mazzola, a cryptocurrency expert at the University of Wollongong, said the AFL’s partnerships with Crypto.com posed a reputational risk to the sports code.

Mazzola said Asic could potentially take action if similar ads were published in Australia.

Ultimately, Asic should prove that the advertised crypto asset clearly matches the definitions provided under [Asic rules]which it probably is, he said.

Mazzola recommended that the rules be changed to explicitly include cryptocurrencies and NFTs.

This would send a clear message to the market and especially to crypto exchanges like Crypto.com that they should be careful when crafting their advertising and most importantly include all warnings about the risks associated with investing in crypto markets. crypto.

The AFL has been contacted for comment, but referred to a previous statement in November when it said it was maintaining its partnership with Crypto.com after the collapse of FTX, one of the largest exchanges in cryptocurrency in the world.

Crypto.com chief executive Kris Marszalek dismissed comparisons to FTX and said his company has an extremely strong balance sheet.

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