The UK Financial Conduct Authority (FCA) puts ban on the adverts by the Chinese crypto investment firm. However, the Chinese-based firm reacted very reluctantly to the FCA action over the advertisement in the London Tube.
The financial news site This is Money has reported the misleading adverts about ‘5% interest rate’ as it is against the rules and the regulations of the FCA. In response, FCA officials told This is Money that they had already talked with the firm about misguided adverts and the firm has agreed to pause the marketing of the product from Jan.24.
FCA further added that Zeux company has presented the original conversation in a wrong way while the actual story is different.
‘’While these discussions are continuing the firm agreed on 24 January to pause the sale of the product to new customers and to stop all marketing activity relating to the product, including on their website, social media and public advertising on the transport network of the product in question.’’
In actual, the adverts, in the underground, are still on the walls and people are misleading by the crypto firm. Chief Executive and the founder of Zeux Frank Zhou said, before the reaction of the FCA, that they are trying to work in the circumference of the FCA rules and regulations.
‘’We’ve been in a dialogue with the FCA regarding the advertising, which has led to comments from them, which we have taken on-board and will continue to work and accommodate these comments in order to meet the FCA’s expectations and requirements.’’
This is Money asked from the UK watchdog about why the adverts are not removed yet. In the response, they said:
‘’We do not pre-approve financial promotions of firms. When we became aware of the adverts we entered into discussions with the firm which resulted in the agreement we have referenced.’’
But they also clarify that the network of these promotions is very large and the time is required to remove the advertisements from the Tube.
‘’We understand that the firm had contacted TFL to get these taken down, but given the size of the network this can take time. We are engaging with TFL about its timeline for taking the remaining adverts down.’’
The promotion by the crypto company for interest rate has been criticized harshly over the social media sites. As one puts the comment on Twitter, ‘’ his advert does not comply with FCA rules on so many levels.’’
Zeux, recently, stated while talking to This is Money, ‘’ We are and will continue to work closely with the FCA, and will make no further comment until we are able to clarify our position with them.’’