Coinbase Adverts Banned in UK for Suggesting Crypto Could Ease Cost of Living Crisis
The Advertising Standards Authority (ASA) has prohibited a series of adverts from cryptocurrency exchange Coinbase, deeming them "irresponsible" and accusing the firm of "trivialising the risks of cryptocurrency." The campaign, which launched in August, implied that using Coinbase could serve as an alternative to financial concerns linked to the ongoing cost of living crisis.
Details of the Banned Campaign
The controversial advertising materials included a two-minute video and three posters. The video depicted a sarcastic scenario where people sang "everything is just fine, everything is grand" as their homes deteriorated and power cuts occurred, while outside, Britons danced through streets littered with rats and overflowing bin bags. It showed shoppers facing rising prices for items like fish fingers, white-collar workers losing jobs, and environmental issues such as sewage pipe bursts and rubbish falling from the sky. The clip concluded with large text stating: "If everything's fine, don't change anything," followed by the Coinbase logo.
The posters, displayed in high-traffic areas like the London Underground and rail stations, featured bold statements such as "Home ownership out of reach," "real wages stuck in 2008," and "eggs now out of budget." Small white background text repeatedly read "Everything is fine," with the bottom of each poster echoing the video's message next to the Coinbase logo.
Regulatory Concerns and Response
The ASA criticised the campaign for using humour to reference serious financial concerns, arguing that it "risked presenting complex, high-risk financial products as an easy or obvious response" to issues like the cost of living crisis. Notably, neither the video nor the posters contained any information about the risks of investing in cryptocurrencies, despite warnings from the UK's Financial Conduct Authority (FCA) that cryptocurrency is "largely unregulated and high risk, and that buyers should be prepared to lose all of their money."
Coinbase, a company founded in 2012 that provides a platform for buying and selling various cryptocurrencies, has been advised by former Conservative chancellor George Osborne since his appointment to chair its global advisory council in December. Osborne has been involved with the company for two years prior, assisting with lobbying efforts in the UK and EU. In response to the ban, a Coinbase spokesperson stated: "While we respect the ASA's decision, we fundamentally disagree with the characterisation of a campaign that critically reflects widely reported economic conditions as socially irresponsible. The advert was intended to provoke discussion about the state of the financial system and the need to consider better futures, not to offer simplistic solutions or minimise risk."
Broader Context and Implications
This incident highlights ongoing tensions between cryptocurrency firms and regulatory bodies in the UK. The video advert had already been banned from television by Clearcast, which approves TV ads in the country, but it was shown on multiple online platforms. Coinbase emphasised its commitment to "authentic, thought-provoking communication" and operating responsibly within the UK's regulatory framework, asserting that digital assets can play a constructive role in a more efficient financial system when adopted responsibly.
The ban underscores the ASA's vigilance in protecting consumers from potentially misleading financial advertising, particularly in a volatile market like cryptocurrency. It also reflects broader debates about the role of digital currencies in addressing economic challenges, as regulators seek to balance innovation with consumer safety.
