Nikolas Sargeant
Coinbase's battle with advertising regulators in the United Kingdom has intensified after the Advertising Standards Authority banned the exchange's big-budget two-minute commercial from YouTube and streaming services, ruling the advertisement was irresponsible in positioning cryptocurrencies as a solution to financial difficulties.
The commercial, first released last summer, depicts Britain as dirty, rat-infested, and damp—a place where prices are uncontrolled and jobs are scarce. Workers sing "everything is fine" while showered with excrement in the streets, while a wealthy couple in a convertible declares they're leaving for Dubai.
The ASA ruled the advertisement irresponsible after receiving 35 complaints. The primary concern centered on the commercial positioning cryptocurrencies as a solution for those experiencing financial difficulties without clearly communicating that digital assets represent risky investments.
"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," the ASA stated.
Bitcoin wasn't mentioned once in the commercial, with no small print included. The only text displayed read: "If everything's fine, don't change anything." Regulators 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."
Although designed as entertainment, the advertisement attempted making a serious point about inflation's impact since the coronavirus pandemic, showing scenes of grocery price increases eroding British pound spending power. One scene depicts a till breaking due to fish finger costs, while another shows a white-collar worker losing his job and becoming a delivery driver.
The ban extends beyond the two-minute commercial. Billboards appearing at train stations and London Underground highlighting the housing crisis and slowing wage growth also cannot appear again unless modified.
Coinbase strongly disagrees with the ASA's position, arguing consumers are more aware about digital assets than ever before and Bitcoin shouldn't be compared to gambling. The exchange stated: "Coinbase said the ads did not encourage socially irresponsible behaviour … They did not explicitly or implicitly suggest any specific solution to the highlighted problems."
Coinbase CEO Brian Armstrong characterized the decision as censorship, stating: "If you can't say it, then there must be a kernel of truth in it." However, the advertisement's failure to include small print about digital asset risks suggests the exchange may have anticipated regulatory rejection.
Coinbase can still display "Everything Is Fine" on social media platforms. The restriction applies only to paid advertising before YouTube videos or streaming content. The exchange could make modifications to comply with British advertising regulations if desired.
From a publicity perspective, the ban represents a triumph for Coinbase, attracting substantially more attention than if approved and shown conventionally on television.
