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 such a restriction under BCAP Code rule 14.5.4, as the products 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 such products to appropriate specialised broadcast audiences. At the same time, it will add more precision to the rule to acknowledge this broad and widespread category of investments that did not exist at the time of the rule’s creation, and remind broadcasters of the statutory restrictions that apply to advertising for them.

Cryptoassets that are not included under the ‘qualifying cryptoassets’ category will continue to be caught under rule 14.5.4, which covers unregulated investments more generally. BCAP ran a public consultation on the proposed new rule and did not receive any responses. The rule adds clarity for industry and consumers, but does not alter existing policy on the advertising of these products. The change has now been approved by Ofcom and will take immediate effect.

The text of the new rule is below:

14.5 These categories of advertisement may be broadcast on specialised financial channels, stations or programming only:

[…]

14.5.5 advertisements for cryptoassets that are transferable and fungible. See FCA guidance on qualifying cryptoassets for more information. The advertised products or services should be available only to clients who have demonstrated through a pre-vetting procedure compliant with the FCA's appropriateness test that they have relevant financial trading experience.