UK regulator examines complaints about advertising BitMEX exchange

The UK Advertising Standards Authority (ASA) is studying BitMEX related Bitcoin advertising for the BitMEX cryptocurrency derivatives exchange.

According to the announcement
ASA, the regulator questioned the allegedly misleading nature of the chart showing BTC price dynamics in an advertisement in January this year. As the ASA notes, the ad in question was a logarithmic graph showing the value of BTC against the US dollar over the past decade.

The ASA reports that it received four complaints, in each of which the company was accused of misleading its announcement either because of the exaggeration of the profitability of investments in bitcoin, or because it did not indicate the risks associated with investments in assets.

In its official response, the parent company BitMEX HDR Global Trading noted that the announcement became part of the campaign dedicated to the 10th anniversary of Bitcoin, as well as the fact that the aforementioned schedule was published along with accompanying text and a detailed article written by BitMEX CEO Arthur Hayes.

BitMEX also noted that it does not buy or sell bitcoins, but only provides access to the cryptocurrency derivatives markets, allowing for P2P trading. The exchange, according to this argument, “does not have a direct financial interest in the value of the cryptocurrency itself,” and therefore its advertising was intended to inform and not to sell.

The ASA, however, concluded that the schedule may be misinterpreted by a wide audience that does not have specialized knowledge. It also considered Hayes’s claim that BTC was “still at an experimental stage of development,” and his other statements insufficient to illustrate investment risks.

In July, it was reported that the CFTC is investigating
BitMEX exchange activity. In addition, the famous cryptocurrency skeptic Nuriel Roubini said that cryptocurrency exchanges “are directly involved in criminal activity”, while he especially highlighted the BitMEX platform.