NFTs, not just works of art? – The UK regulator tap on the fingers of Crypto.com and a project NFT who would have broadcast advertising. These would then have violated some rules relating to the promotion of financial products. The criticisms and disputes on both sides above all illustrate the vagueness regulation around NFTs
NFT Ads: UK Sees More Than Just Works of Art
L’Advertising Standards Authority (ASA) – the Advertising Regulatory Authority – in the UK has tackled advertising on Facebook aired since July of this year. They promoted NFTs of Crypto.com and the project Turtle United. The agency their reproach for having omitted to expose the risks which are related to investments in NFTs and failing to properly present transaction fees.
Crypto.com has disputed this decision. The crypto exchange said it does not believe artists’ works and sports collectibles sold on its platform are of a financial nature.
The company recalled that NFTs were excluded from recent Treasury consultation documents on cryptocurrencies and that, within this framework, it believed that they were not not subject to financial standards enacted in the code of the ASA. Despite these arguments from Crypto.com and although the advertisements in question are no longer online, the regulator has maintained its complaint.
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A sanction that is not new for the crypto platform
In January this year, the ASA had already blamed Crypto.com for two advertisements. They did not display the risks relating to the investment in the promoted product and which would have benefited “consumer inexperience or credulity”.
As for Turtle Unitedthe project did not react to this agency complaint. The ASA accuses him of having claimed that his NFTs offered “a lot of value to its holders”thus suggesting that they had a significant value that would be warranted.
At this stage, the Advertising Regulatory Authority of UK above all proved that it watch closely web3 product promotions, which are also targeted by agencies in other countries. This is particularly the case of the Australian regulator. He could copy the rules on advertisements of crypto products and services of its British counterpart.
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