The U.K. Renders “Time to Buy” Bitcoin Advertisements Misleading
The Advertising Standard Authority, an independent regulatory body in the U.K, banned Luno exchange’s ad encouraging individuals to purchase Bitcoin. According to the watchdog, the posters only urge people to buy the dominant coin but exclude the risks involved in acquiring one.
‘Time to Buy’ Ads
The regulator also added on the risk factor, saying that BTC investments tend to be technical, volatile, and could lead to financial losses. This rule follows certain events that occurred weeks before, including BTC’s price drop by 30% and a comment by the Bank of England’s governor saying crypto investors should brace themselves for losses.
“Time to buy” posters have circulated since December 2020 at the capital’s bus network and all over the London Underground.
The Downsides of BTC Investments
Like other digital currencies, Bitcoin is prone to fluctuate in prices and makes traders miss lucrative buying and selling opportunities. The digital currency is only reliant on a technology where coins are digitally mined, and the blockchain is preserved by miners who validate transactions.
A technological-based cryptocurrency exposes users to online fraud or any cyber-related threat. Furthermore, Bitcoin regulations threaten its investments since different jurisdictions make it either a commodity or a currency. A user needs to be on high alert with the market shifts and make minimal investments that will not lead to losses.
In most cases, regulations limit the use case of Bitcoin since the majority of platforms and entities do not accept digital currency as a legitimate medium of exchange.
About Luno Exchange
Luno operates as a Bitcoin exchange platform that aims at making the trading experience easier for users. Since its launch in 2013, Luno has gained massive trust from users and managed to process numerous transactions across 40 countries worldwide. Aside from Bitcoin, the exchange supports other types of cryptocurrencies such as Ethereum, XRP, and Bitcoin Cash.
Luno is designed to accommodate both experienced and new traders as it provides straightforward ways of trading crypto and fiat currencies. A secure online wallet is also integrated for users who wish to store their digital coins temporarily.
The exchange offers its users advanced security measures where 95% of the funds are stored in cold storage and an additional 2FA procedure. Luno is now on the ASA’s radar as it advised the platform’s marketing communications to clarify the crucial fact that BTC’s prices are variable.