The UK's advertising watchdog has taken decisive action against cryptocurrency exchange Coinbase, banning a series of adverts that suggested using its services could provide a solution to the ongoing cost of living crisis. The Advertising Standards Authority (ASA) ruled that the campaign, which featured both video and poster formats, was "irresponsible" and dangerously "trivialised the risks of cryptocurrency" during a period of significant financial strain for many households.
Controversial Campaign Content
The banned advertising materials included a particularly striking two-minute video that employed dark humour to depict Britain's economic challenges. The footage showed citizens singing "everything is just fine, everything is grand" while their homes fell into disrepair and suffered power cuts. Outside, people danced cheerfully through streets littered with rats and overflowing bin bags, creating a surreal contrast between the cheerful soundtrack and grim visual reality.
As the advertisement progressed, viewers witnessed multiple scenes reflecting contemporary economic anxieties: a shopper facing escalating prices for basic groceries like fish fingers, white-collar workers losing their employment, a sewage pipe bursting, and rubbish literally falling from the sky. The clip concluded with bold text declaring: "If everything's fine, don't change anything," before revealing the Coinbase logo.
Regulatory Concerns and Ruling
The ASA expressed serious concerns about how the campaign presented complex financial products. "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," the regulator stated in its ruling. The authority emphasised that neither the video nor the accompanying posters contained any information about the substantial risks associated with cryptocurrency investment.
This omission proved particularly problematic given the Financial Conduct Authority's clear warnings that cryptocurrency remains "largely unregulated and high risk, and that buyers should be prepared to lose all of their money." The ASA noted that the advertising campaign, which launched in August, had been displayed across multiple online platforms and in high-traffic physical locations including London Underground stations and major rail terminals.
George Osborne's Involvement
The controversy surrounding Coinbase's advertising comes amid heightened scrutiny of the company's political connections. The cryptocurrency exchange appointed former Conservative Chancellor George Osborne to chair its global advisory council in December, following two years of advisory work. Osborne's role involves assisting with the company's lobbying efforts in both the UK and European Union markets.
Coinbase's chief policy officer previously stated that Osborne would play an "active role in helping us with policymakers around the world." The former politician has been vocal about cryptocurrency adoption, writing in the Financial Times last August that Britain risked being left behind in the cryptocurrency boom and might miss a second wave of demand. Osborne has since expanded his portfolio to include a role at ChatGPT developer OpenAI, alongside his positions as chair of the British Museum and co-host of a podcast with former Labour minister Ed Balls.
Banned Poster Campaign
Alongside the controversial video advertisement, the ASA banned three posters from Coinbase's campaign. These featured stark declarations in large lettering including "Home ownership out of reach," "real wages stuck in 2008," and "eggs now out of budget." Each poster repeated the phrase "Everything is fine" in small white text against the background, with the bottom section displaying the message "If everything's fine, don't change anything" alongside the company logo.
The television version of the video advertisement had already been prohibited by Clearcast, the organisation responsible for approving television commercials in the UK. However, the ASA's ruling addressed the broader dissemination of the campaign across digital and physical advertising spaces.
Coinbase's Response
A spokesperson for Coinbase defended the campaign while acknowledging the ASA's decision. "While we respect the ASA's decision, we fundamentally disagree with the characterisation of a campaign that critically reflects widely reported economic conditions as socially irresponsible," they stated.
The company maintained that "the advert was intended to provoke discussion about the state of the financial system and the need to consider better futures, not to offer simplistic solutions or minimise risk." Coinbase added that while "digital assets are not a panacea, we believe their responsible adoption can play a constructive role in a more efficient and freer financial system."
The cryptocurrency exchange emphasised its commitment to "authentic, thought-provoking communication and to operating responsibly within the UK's regulatory framework," despite the advertising ban. This incident highlights the ongoing tension between cryptocurrency companies seeking to promote adoption and regulators concerned about consumer protection in a volatile and complex financial sector.
