UK Watchdog Bans Coinbase Ads Over Cost-of-Living Claims

The Advertising Standards Authority found that the ads used humor and satire to suggest crypto as a response to rising prices, stagnant wages, and affordability pressures, which it said risked misleading consumers by portraying high-risk financial products as simple solutions. The ban covered a two-minute musical-style video and three posters displayed in high-traffic locations. The video had already been rejected for TV broadcast by Clearcast but continued to appear online. Separately, Coinbase started backend testing of a new stablecoin, USDF, under its Custom Stablecoins program, which allows businesses to issue branded, dollar-backed tokens collateralized by USDC. The initiative forms part of Coinbase’s growing focus on stablecoins, which generated nearly $247 million in revenue for the company in the fourth quarter.

Coinbase Ads Banned in UK

The UK’s advertising watchdog moved to ban a series of advertisements from Coinbase, claiming that the campaign irresponsibly linked cryptocurrency investing to the country’s cost-of-living crisis while downplaying the risks involved. According to a report by The Guardian, the UK’s Advertising Standards Authority (ASA) concluded that the ads trivialized serious financial concerns and risked misleading consumers.

Screenshot from Coinbase’s controversial ad (Source: YouTube)

The ASA said the campaign used humour and satire to frame crypto as an implied response to rising living costs, stagnant wages, and declining affordability. Regulators argued that this approach made complex, high-risk financial products appear like an “easy or obvious” solution to economic hardship. The watchdog pointed out that none of the advertisements included clear information about the risks associated with cryptocurrency investing, which is a key requirement under UK advertising rules.

The banned campaign consisted of a two-minute musical-style video and three poster advertisements. The video was released by Coinbase in July, and was initially rejected for television broadcast by Clearcast, which said it suggested crypto could solve economic challenges without sufficient evidence. Despite the TV rejection, the ASA found that the video was still shown online, while the posters appeared in high-traffic public areas, including the London Underground and major rail stations.

The posters featured bleak economic messages like “home ownership out of reach,” “eggs now out of budget,” and “real wages stuck in 2008,” each accompanied by the slogan “If everything’s fine, don’t change anything” alongside Coinbase’s logo. The ASA said this messaging failed to provide appropriate context or risk warnings. This point was also raised by the Financial Conduct Authority, which repeatedly stated that crypto advertising must include prominent risk disclosures.

After the earlier TV ban, Coinbase CEO Brian Armstrong publicly defended the campaign. He argued that the rejection suggested the message struck a nerve, and said it reflected dissatisfaction with the traditional financial system rather than a political statement. Armstrong claimed crypto is a potential avenue for financial improvement and said attempts to block the ad only amplified its reach.

Coinbase Tests Custom Stablecoins

Meanwhile, Coinbase started backend testing of an in-development stablecoin called USDF as part of its push to let businesses create their own branded, dollar-backed tokens through its new “Custom Stablecoins” feature. The exchange confirmed on Tuesday that USDF has been enabled on Coinbase Exchange strictly for operational testing, and trading, deposits, and withdrawals are not yet available.

The Custom Stablecoins feature, which Coinbase introduced in December, is designed to allow businesses to issue their own stablecoins while benefiting from seamless interoperability across Coinbase-supported blockchains. These tokens are intended to support a wide range of use cases, including payroll, business-to-business payments, cross-border transactions, and treasury management. Under the model, businesses can also earn rewards tied to on-chain activity, with the stablecoins collateralized by Circle’s USDC.

USDF is being developed by crypto infrastructure platform Flipcash and is expected to launch in early 2026. Once live, it will serve as the primary stablecoin in the Flipcash app. Coinbase’s testing of USDF means that there is growing interest from infrastructure providers and fintech platforms in leveraging custom stablecoins rather than relying solely on existing, generalized options.

Flipcash is not alone in this. Solana-focused self-custody wallet Solflare and decentralized finance platform R2 are also working with Coinbase to roll out their own customized stablecoin solutions. 

Stablecoins are becoming central to Coinbase’s business model. The company reported nearly $247 million in stablecoin-related revenue in the fourth quarter and has actively lobbied US lawmakers to ensure that upcoming crypto market structure legislation does not restrict stablecoin rewards. The overall stablecoin market is also expanding rapidly, with the total stablecoin supply now exceeding $312 billion. The US Treasury projected that the sector could reach $2 trillion by 2028, while Bloomberg recently forecast that stablecoin payment flows could grow at an annual rate of 81%, reaching $56.6 trillion by 2030.