The UK's Advertising Standards Authority (ASA) has banned a major advertising campaign from cryptocurrency exchange Coinbase, ruling it was "irresponsible" and "trivialized the risks of cryptocurrency." The banned materials include a two-minute satirical musical video and three posters displayed in high-traffic areas like the London Underground and rail stations.
The controversial video advertisement, first released in July and viewed millions of times online, depicts Britain as a failing state with scenes of rat-infested streets, crumbling homes, soaring grocery prices, and mass job losses. Workers sing "everything is fine" while being showered with excrement, contrasting with a wealthy couple declaring they're off to Dubai. The campaign's slogan was "If everything's fine, don't change anything," positioned next to Coinbase's logo.
The ASA received 35 complaints and concluded the ads positioned cryptocurrencies as a solution for those suffering from financial difficulties without making clear that digital assets are high-risk investments. Regulators stated: "By presenting the country as failing in areas such as the cost of living and home ownership, the ads implied to consumers that they should make a financial change... We considered this had the effect of positioning Coinbase as an alternative to traditional financial systems."
Specifically, the ASA found the advertisements violated rules by failing to include any risk warnings about cryptocurrency investments, which the Financial Conduct Authority requires to be "labeled with prominent risk warnings." The regulator added: "We considered that using humour to reference serious financial concerns, alongside a cue to 'change,' risked presenting complex, high-risk financial products as an easy or obvious response to those concerns."
Coinbase CEO Brian Armstrong defended the campaign, calling the ban censorship and suggesting "there must be a kernel of truth in it." Armstrong argued: "Needing to update the system and improve society is not a political statement... 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." He welcomed the controversy, claiming it would help spread the message.
The exchange had previously argued to regulators that consumers are more aware about digital assets than ever, that Bitcoin shouldn't be compared to gambling, and that the ads didn't encourage irresponsible behavior. Coinbase noted that UK users must complete a knowledge quiz and have a 24-hour cooling-off period when opening accounts.
While the video cannot be shown as advertisements before YouTube videos or on streaming services, Coinbase can still display it on its own social media platforms. The exchange could also modify the campaign to comply with UK advertising regulations if it chooses to relaunch it.
