BCAP restricts broadcast ads for cryptoassets

The Broadcast Committee of Advertising Practice (BCAP) has published a new rule that explicitly bans ads for certain types of cryptoasset products from being broadcast to mainstream, non-specialist audiences.

These products were already subject to restrictions under BCAP Code rule 14.5.4, as they are not regulated by the Financial Conduct Authority (FCA).

However, in October 2023 the FCA took on regulation of the advertising of fungible and transferable cryptoassets, a category which includes cryptocurrencies and utility (fan) tokens.

These ‘qualifying cryptoassets’ were categorised as Restricted Mass Market Investments, meaning they can be marketed to the public subject to restrictions that recognise their risk level and require investors to undergo pre-vetting.

BCAP considers that adding this category explicitly to the Code will maintain the existing restriction of products to appropriate specialised broadcast audiences.

At the same time, it will add more precision to existing rules to acknowledge this broad and widespread category of investments that did not exist previously.

The rule adds clarity for industry and consumers but does not alter existing policy on the advertising of these products.

The change has been approved by Ofcom and will take immediate effect.