Coinbase's Controversial Advertisement, Previously Banned, Now Airing on YouTube Channels of UK TV Stations
UK Politicians Call for Tighter Regulation of Cryptocurrency Ads on YouTube
In a bid to protect consumers from potential scams and misleading content, UK politicians are pushing for stricter regulations on cryptocurrency ads on YouTube. The Liberal Democrats, in particular, have been vocal in their calls for action.
The current system allows YouTube to self-regulate its advertising, unlike traditional TV and radio, where ads must be pre-approved by industry bodies like Clearcast and Radio Central. This difference has created a "two-tier" system that the Liberal Democrats argue must be addressed to prevent scams and protect consumers.
The issue of scams and deepfakes on YouTube has been a growing concern. Sophisticated scams, including deepfakes impersonating public figures like King Charles and Martin Lewis, are prevalent on the platform. These scams often promote cryptocurrency investments, leading to significant financial losses for viewers.
One such incident involved the rejection of Coinbase's "Everything Is Fine" ad by Clearcast. The ad was deemed to present cryptocurrency as a potential solution without sufficient evidence or warnings about risks. However, the ad has generated millions of views across social media due to the controversy surrounding its rejection.
Coinbase CEO Brian Armstrong used the ad's rejection as a platform to generate publicity for the advert, further fuelling the debate. The ad depicts the UK as bleak, rat-infested, and with prices in supermarkets spiraling out of control, contrasting this with a utopian vision of the future powered by cryptocurrency.
The controversy surrounding the Coinbase ad has not been politicized as a statement for any specific political party in the UK. However, it has highlighted the need for stricter regulations on cryptocurrency ads on YouTube.
According to figures released by Ofcom last month, YouTube is the second most-watched service on UK television, behind the BBC and ahead of ITV. This popularity makes it a prime target for scammers. The regulations on YouTube are looser compared to traditional TV, allowing ads prevented from broadcast on TV to appear on YouTube.
The Advertising Standards Authority (ASA) has not banned the Coinbase advert. However, it does not have the power to ban commercials outright; the ASA only takes action if there are complaints after a commercial has aired.
The push for regulation is aimed at closing the loopholes that allow these scams to thrive, ensuring that online advertising is subject to similar scrutiny as traditional media. The UK's Online Safety Act is part of a broader effort to increase online safety and regulate harmful content. However, the current legislation does not fully address the issue of advertising scams on platforms like YouTube.
The Liberal Democrats spokesman Max Wilkinson expressed concern about YouTube's "lighter touch" advertising regime last week. Some British politicians are advocating for closing the "loophole" that allows YouTube to accept ads rejected by UK TV clearance bodies. The aim is to align YouTube's advertising regulations with those of traditional media to ensure that all platforms are held to the same standards, thereby protecting consumers from misleading and harmful content.
