Editorial - Journal of Finance and Marketing (2025) Volume 9, Issue 3
Crypto currency Advertising and Consumer Trust: A Regulatory Perspective
Johan Nyberg*Division of Molecular Cell Biology, Uppsala Science University, Sweden.
- *Corresponding Author:
- Johan Nyberg
Division of Molecular Cell Biology
Uppsala Science University, Sweden.
E-mail: j.nyberg@cellmetabol.se
Received: 04-Jun-2025, Manuscript No. AAJFM-25-166781; Editor assigned: 06-Jun-2025, PreQC No. AAJFM-25-166781(PQ); Reviewed: 19-Jun-2025, QC No AAJFM-25-166781; Revised: 23-Jun-2025, Manuscript No. AAJFM-25-166781(R); Published: 30-Jun-2025, DOI:10.35841/AAJFM-9.3.304
Citation: Nyberg J. Crypto currency advertising and consumer trust: A regulatory perspective. J Fin Mark. 2025;9(3):304
Introduction
Crypto currency advertising has grown in prominence alongside the meteoric rise of digital currencies, drawing the attention of investors, technologists, and regulators alike. As cryptocurrencies shift from the fringes of finance into mainstream consciousness, marketing strategies employed by crypto firms have become more aggressive, widespread, and, at times, controversial. Advertisements promising rapid wealth or technological revolution have populated television screens, online platforms, and even sporting events. Yet, this boom in crypto advertising raises critical questions about consumer trust and the need for regulatory oversight. Without proper safeguards, such advertising can mislead consumers, create unrealistic expectations, and erode public trust in both the cryptocurrency ecosystem and broader financial markets. A regulatory perspective is essential in evaluating how to maintain a balance between innovation and consumer protection [1].
The decentralized and largely unregulated nature of the cryptocurrency market presents unique challenges for advertising oversight. Unlike traditional financial products, which are subject to stringent regulations and disclosures, many crypto tokens and platforms operate in a grey zone with little to no regulatory accountability. This regulatory vacuum has created fertile ground for misleading promotions. In some cases, influencers and celebrities endorse crypto products without disclosing financial incentives or without fully understanding the products themselves. Such endorsements, often flashy and persuasive, may downplay the inherent risks associated with investing in digital currencies, including high volatility, lack of investor protections, and vulnerability to fraud or cyberattacks [2].
Consumer trust, a cornerstone of any healthy financial market, is easily undermined by exaggerated or deceptive advertising. When individuals invest based on promises of guaranteed returns or revolutionary utility, only to suffer losses due to market downturns or platform collapses, their trust in the system is shaken. The collapse of major crypto exchanges and lending platforms—such as FTX, Celsius, and Terra—has spotlighted how unchecked promotional practices can lure consumers into opaque and risky ventures. These incidents have spurred regulatory bodies around the world to reassess how crypto-related advertisements should be governed to prevent further erosion of public trust [3].
Regulatory responses have varied significantly by jurisdiction, reflecting differing philosophies about innovation, financial inclusion, and market integrity. In countries such as the United Kingdom, regulatory bodies like the Financial Conduct Authority (FCA) have taken proactive steps to ensure crypto advertisements meet standards of fairness, clarity, and truthfulness. The FCA mandates that promotional content must be clearly labeled as advertising, must avoid misleading claims, and must include appropriate risk warnings. Similar initiatives are underway in the European Union, where the Markets in Crypto-Assets (MiCA) regulation aims to create a harmonized framework for crypto asset operations, including advertising standards [4].
In the United States, the Securities and Exchange Commission (SEC) and the Federal Trade Commission (FTC) have begun scrutinizing crypto promotions more rigorously. The SEC has targeted misleading promotions involving tokens that qualify as securities, enforcing penalties for non-disclosure and fraudulent claims. The FTC, focusing on consumer protection, has investigated deceptive practices in advertising and is considering broader guidelines for influencers promoting crypto-related products. These efforts underscore the growing recognition that crypto advertising is not merely a marketing issue but a systemic concern that intersects with investor protection, financial literacy, and public confidence in emerging technologies [5].
A key challenge in regulating crypto advertising lies in the global and digital nature of the industry. Unlike traditional financial firms, many crypto companies operate across borders with minimal physical presence, leveraging social media and online platforms to reach a global audience. This makes it difficult for regulators in one country to monitor or enforce advertising standards effectively. Cross-border cooperation, therefore, becomes essential. Initiatives such as the International Organization of Securities Commissions (IOSCO) are promoting international collaboration to address these challenges. Shared guidelines, information exchange, and joint enforcement actions can help build a coherent regulatory response to misleading or harmful crypto promotions [6].
At the same time, regulators must walk a fine line between consumer protection and stifling innovation. Cryptocurrency and blockchain technology offer genuine opportunities for financial inclusion, decentralized governance, and technological advancement. Overly restrictive advertising rules could limit the ability of startups and innovators to communicate with potential users or investors. Therefore, a nuanced regulatory approach is required—one that distinguishes between responsible, informative advertising and misleading hype. This includes encouraging educational campaigns that empower consumers to make informed decisions, as well as fostering transparency about token utility, project viability, and potential risks [7].
Transparency is a fundamental principle in aligning crypto advertising with consumer trust. Advertisements should clearly disclose whether a product is regulated, the nature of any financial risks, and whether the advertisement constitutes a paid promotion. Platforms such as YouTube, Twitter, and Instagram—frequently used for crypto promotions—must be encouraged or compelled to enforce such disclosure norms. Influencers, in particular, have a duty to disclose financial relationships and should be held accountable for promoting products that may cause harm to their followers. Regulatory frameworks that include penalties for non-disclosure or false advertising can deter bad actors and set clearer standards for ethical promotion [8].
Consumer education also plays a pivotal role in fostering trust in the cryptocurrency space. Regulators, industry groups, and educational institutions must work together to enhance financial literacy and technological understanding. This includes teaching consumers how to evaluate crypto projects, understand blockchain technology, identify red flags in advertisements, and assess their own risk tolerance. A well-informed public is less likely to fall victim to misleading promotions and more likely to engage with the crypto market in a thoughtful, sustainable way [9].
From a corporate governance standpoint, crypto firms themselves bear responsibility for ensuring their advertising practices align with ethical standards. Building long-term trust requires more than regulatory compliance—it demands a commitment to integrity, transparency, and accountability. Crypto companies that prioritize responsible communication, engage openly with their communities, and adhere to best practices in risk disclosure are more likely to earn and retain consumer trust. Voluntary codes of conduct, third-party audits of marketing practices, and public reporting on promotional activities can further enhance credibility in the eyes of investors and regulators alike [10].
Conclusion
In conclusion, the intersection of cryptocurrency advertising and consumer trust is a complex and evolving landscape, deeply influenced by regulatory perspectives. As digital currencies continue to gain traction, responsible advertising will be central to sustaining the legitimacy and stability of the crypto market. Regulatory bodies must craft policies that deter deceptive promotions while encouraging honest, transparent, and informative communication. At the same time, industry participants, influencers, and digital platforms must adopt a proactive stance toward ethical advertising practices. Consumer education and technological innovation will also play vital roles in shaping a safer, more trustworthy environment for crypto users. Ultimately, safeguarding consumer trust in the era of cryptocurrency will require a multi-stakeholder effort grounded in clarity, accountability, and a shared commitment to responsible innovation.
References
- Potters G, Horemans N, Jansen MA. The cellular redox state in plant stress biology–a charging concept. Plant Physiol Biochem. 2010;48(5):292-300.
- Kamata H, Hirata H. Redox regulation of cellular signalling. Cell Signal. 1999;11(1):1-4.
- Cuypers A, Karen S, Jos R, et al. The cellular redox state as a modulator in cadmium and copper responses in Arabidopsis thaliana seedlings. J Plant Physiol. 2011;168(4):309-16.
- Nakamura H, Nakamura K, Yodoi J. Redox regulation of cellular activation. Annu Rev Immunol. 1997;15(1):351-69.
- Schafer FQ, Buettner GR. Redox state and redox environment in biology. Signal transduction by reactive oxygen and nitrogen species: pathways and chemical principles. 2003:1-4.
- Lazzarino G, Amorini AM, Fazzina G, et al. Single-sample preparation for simultaneous cellular redox and energy state determination. Anal Biochem. 2003;322(1):51-9.
- Moran LK, Gutteridge J, Quinlan GJ. Thiols in cellular redox signalling and control. Curr Med Chem. 2001;8(7):763-72.
- Montero AJ, Jassem J. Cellular redox pathways as a therapeutic target in the treatment of cancer. Drugs. 2011;71:1385-96.
- Cesaratto L, Vascotto C, Calligaris S, et al. The importance of redox state in liver damage. Ann Hepatol. 2004;3(3):86-92.
- Bouayed J, Bohn T. Exogenous antioxidants—Double-edged swords in cellular redox state: Health beneficial effects at physiologic doses versus deleterious effects at high doses. Oxidative medicine and cellular longevity. 2010;3(4):228-37.
Indexed at, Google Scholar, Cross Ref
Indexed at, Google Scholar, Cross Ref
Indexed at, Google Scholar, Cross Ref
Indexed at, Google Scholar, Cross Ref
Indexed at, Google Scholar, Cross Ref
Indexed at, Google Scholar, Cross Ref
Indexed at, Google Scholar, Cross Ref
Indexed at, Google Scholar, Cross Ref
Indexed at, Google Scholar, Cross Ref