Following consultation (to which it didn’t receive any responses), the Broadcast Committee of Advertising Practice (BCAP) has introduced 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 restricted under rule 14.5.4 of the BCAP Code, as the products are not regulated by the Financial Conduct Authority (FCA). However, the landscape changed in October 2023, when the FCA began regulating the advertising of fungible and transferable cryptoassets, including cryptocurrencies and utility (fan) tokens.

These ‘qualifying cryptoassets’ are classified as Restricted Mass Market Investments.  This means that they can be marketed to the public, but with restrictions that recognise their risk level and require investors to undergo pre-vetting.

BCAP’s update to the BCAP Code maintains the existing restrictions on advertising these products to appropriate specialised broadcast audiences. It also adds precision to the rule, acknowledging the broad and widespread category of investments that did not exist when the rule was first created. It also serves to remind broadcasters about the statutory restrictions on advertising these products.

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. 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 takes immediate effect.

The text of the new rule is:

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.