The Advertising Standards Authority (ASA), which regulates the contents of advertisement in the United Kingdom, is cracking down on forex and crypto scam ads. Recently, the regulator reached a partnership to develop an alert system targeting fake content in adverts.
The UK loses $255 million to forex and crypto scam ads
The system was developed in partnership with ASA and the Internet Advertising Bureau (IAB). It purports to monitor contents in adverts, and alert on suspicious ones, especially in the digital currency industry and forex. This is coming amid the increasing level of fraudulent activities online, per the report.
According to the regulator, the threat from fraudulent activities was rampant in the forex and cryptocurrency markets. Reportedly, victims of forex and crypto scam ads had forfeited about $255 million. Besides tracking fraudulent ads in these markets, the system will also focus on paid ads in all industries.
ASA’s executive director, Guy Parker, mentioned that a minority of adverts published are meant for fraudulent purposes, rather than informing or entertaining the audience. However, he believes that the new alert system would facilitate tracking and halting such ads.
More regulation for the crypto sector
Jon Mew, the CEO of IAB opined that the alert system would enable the authorities to crack down on fraudulent adverts, like crypto scam ads, since they couldn’t shut down such adverts completely. Perhaps, this would help to reduce the promotion of fake digital currency investment. Mew added:
This initiative takes a joined-up approach to remove scam ads and will play an important role in improving the online ecosystem for both advertisers and consumers. It needs to be used alongside law enforcement to address the underlying illegitimate activity behind these ads.
More so, the regulator is reportedly working with big online platforms like Google, and social media platforms like Facebook, to crack down on crypto scam ads. Probably, this recent move comes as the country plans to increase regulation for the digital currency sector.