<\/p>\n
The AFL\u2019s crypto exchange partner, Crypto.com, has breached UK advertising standards on multiple occasions and been accused of \u201cmisleading\u201d and \u201cirresponsible\u201d behaviour.<\/p>\n
The UK Advertising Standards Authority rulings may invite further scrutiny of Crypto.com<\/a> promotions in Australia.<\/p>\n A five-year partnership<\/a> between the AFL and the Singapore-based exchange was announced in January 2022. Since then, Crypto.com has been promoted around AFL stadiums.<\/p>\n In December the ASA ruled that a local Crypto.com advertisement \u201cfailed to illustrate the risk of investing in non-fungible tokens<\/a>\u201d. It also found the ad did not make it clear that fees would apply.<\/p>\n In response, Crypto.com disputed the ruling and said the need to mention fees in the ad was not relevant and would \u201conly confuse consumers\u201d.<\/p>\n Earlier in 2022 the regulator upheld rulings on two other ads that were accused of exploiting the \u201cinexperience or credulity\u201d of consumers<\/a>.<\/p>\n One said \u201cbuy bitcoin with credit card instantly\u201d, which the regulator said \u201ctook advantage of consumers\u2019 inexperience and credulity by not making clear tax could be paid on cryptocurrency profits and by irresponsibly encouraging investing in cryptocurrency on a credit card\u201d.<\/p>\n Another told consumers they could \u201cearn up to 8.5%\u201d, which the ASA considered misleading \u201cbecause the basis for calculating the earning forecast had not been made clear\u201d.<\/p>\n Crypto.com told the regulator these adverts were deleted as soon as concerns were raised and that its oversight process had been strengthened.<\/p>\n It is not known whether any of these ads ran in the Australian market.<\/p>\n A Crypto.com spokesperson said the company was \u201ctrusted by more than 70 million customers worldwide and is the industry leader in regulatory compliance, security and privacy certifications\u201d.<\/p>\n The Australian Securities and Investments Commission has called for a regulatory framework for cryptocurrency and crypto assets like NFTs in order to better protect consumers. While that is being developed, a spokesperson said rules around misleading and deceptive conduct still apply to any kind of crypto asset.<\/p>\n \u201cAny firm that is misleading or deceptive in its advertising is breaking the law,\u201d the Asic spokesperson said.<\/p>\n The regulator took BPS Financial to federal court in October over what Asic alleges is misleading and deceptive claims about the Qoin crypto asset<\/a>, and Block Earner in November<\/a> for allegedly offering financial products without an Australian financial services licence.<\/p>\n