TLDR
- The UK’s Advertising Standards Authority banned Coinbase’s two-minute musical ad and three posters for being “irresponsible” and trivializing crypto risks
- The ASA received 35 complaints about the ad, which depicted a run-down UK with rats, trash, and economic problems without mentioning investment risks
- Coinbase’s posters appeared in London Underground stations highlighting home ownership, egg prices, and wage stagnation with the slogan “If everything’s fine, don’t change anything”
- The ads failed to include required risk warnings about cryptocurrency investments as mandated by UK’s Financial Conduct Authority
- CEO Brian Armstrong called the ban “censorship” and said it proves “there must be a kernel of truth” in the ad’s message
The UK’s Advertising Standards Authority has banned a Coinbase advertising campaign that regulators say presented cryptocurrency as a solution to financial problems without proper risk warnings. The ban affects a two-minute video ad and three billboard posters.
The ASA made its ruling after receiving 35 complaints about the campaign. The watchdog said the ads were “irresponsible” and “trivialized the risks of cryptocurrency.”
The video ad shows people singing “everything is just fine” while their surroundings fall apart around them. Scenes include a dilapidated street filled with trash bags and rats, workers being fired, and shoppers dealing with rising food costs. The ad ends with the text “If everything’s fine, don’t change anything” before showing Coinbase’s logo.
Three billboard posters accompanied the video. The posters appeared in high-traffic areas including London Underground stations and rail stations. Each poster highlighted economic issues facing UK residents.
One poster read “home ownership out of reach.” Another said “eggs now out of budget.” The third stated “real wages stuck in 2008.” All three included the same slogan next to Coinbase’s logo.
Missing Risk Warnings Trigger Regulatory Action
The ASA’s main concern was that none of the advertisements included information about cryptocurrency risks. The Financial Conduct Authority requires crypto ads to display prominent risk warnings.
Regulators said the campaign positioned Coinbase as an alternative to traditional financial systems. The ads referenced serious financial concerns like cost of living and home ownership. The ASA said this approach risked presenting high-risk financial products as an easy response to economic challenges.
The video ad was released in July but was rejected for TV broadcast. Clearcast, which approves TV ads, said it showed crypto as a potential solution to economic challenges without sufficient evidence. Despite the TV ban, the video appeared online and the posters went up in public spaces.
Coinbase argued that consumers are more aware of digital assets than before. The exchange said the ads did not encourage irresponsible behavior or suggest specific solutions to the problems shown. Coinbase also pointed to its user protections, including a knowledge quiz and 24-hour cooling-off period for new UK accounts.
CEO Defends Campaign as Exercise in Free Speech
Coinbase CEO Brian Armstrong defended the ad in August. He said the TV ban meant “there must be a kernel of truth in it.” Armstrong argued that updating the financial system is not a political statement about UK parties.
“It’s a statement about how the traditional financial system is not working for many people and how crypto represents a way to improve that,” Armstrong said. He added that Coinbase welcomes attacks on the message as it helps spread awareness.
The ban applies to the video appearing as an advertisement on YouTube and streaming services. Coinbase can still show the video on its social media platforms. The exchange could also modify the campaign to comply with UK advertising regulations.
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