A cryptocurrency firm advised by George Osborne has been prohibited from running advertisements that imply its services could alleviate the cost of living crisis.
Coinbase, which appointed the former Conservative prime minister to lead its global advisory board last year, has been deemed “irresponsible” by the UK’s advertising regulator for downplaying the risks involved with cryptocurrencies in its marketing.
One of the ads features a somewhat humorous two-minute video showing Britons cheerfully dancing through streets littered with rats and garbage bags. Meanwhile, they sing, “Everything’s fine, everything’s great,” while their homes are in disarray and the lights go out.
As the video progresses, shoppers encounter skyrocketing fish finger prices, office employees face layoffs, sewer pipes break, and trash mysteriously falls from the sky.
The ad concludes with bold text saying, “If everything is fine, don’t change anything,” followed by the Coinbase logo. Founded in 2012, the platform allows people to buy and sell various cryptocurrencies.
The Advertising Standards Authority (ASA) stated that the campaign, which began in August, implied that using Coinbase could serve as a remedy for financial worries related to the cost of living, trivializing the potential risks of cryptocurrency investment.
“We believed that using humor to tackle serious financial issues while simultaneously promoting ‘change’ could mislead people into viewing complex, high-risk financial products as straightforward solutions,” the report noted.
Osborne was appointed to the Coinbase advisory board in December to assist with the company’s lobbying in the UK and EU, having already played an advisory role for two years prior.
The company’s then-chief policy officer stated that Osborne would take on an “active role in supporting policymakers globally.” In August, Osborne also cautioned that the UK was missing out on the cryptocurrency boom, risking the chance to attract a second wave of demand.
Recently, the former politician added being a developer for OpenAI, the creator of ChatGPT, to his list of roles, which also includes being a director at the British Museum and co-hosting a podcast with former Labor Secretary Ed Balls.
Additionally, three Coinbase posters were banned by the ASA, with prominent messages stating, “Homeownership is out of reach,” “Real wages remain as they were in 2008,” and “Eggs are off the budget.” The smaller text beneath said, “Everything is fine,” and next to the Coinbase logo, it implores, “If everything is fine, don’t change anything.”
The ASA noted that neither the video nor the posters provided any details about the risks tied to investing in cryptocurrencies, despite UK regulatory warnings that cryptocurrencies are “largely unregulated and risky,” advising buyers to be ready to potentially lose all their money.
Coinbase’s video ad had already been banned from television by Clearcast, the body responsible for approving UK TV adverts, but the ASA pointed out that the posters had been placed in “high-traffic areas like London Underground and train stations” and shown on numerous online platforms.
“While we respect the ASA’s decision, we strongly disagree with the characterization of a campaign that highlights widely reported economic challenges as socially irresponsible,” a Coinbase representative stated.
They also expressed that the ad aims to inspire discussion about the financial system’s state and the necessity for improvement, not to provide oversimplified solutions or downplay risks.
“While digital assets aren’t a cure-all, we believe their thoughtful use can positively contribute to a more effective and liberated financial system. Coinbase is dedicated to promoting authentic and insightful communications while abiding by UK regulations.”
