Aussie Crypto Influencers Hit with Tough New Legal Restrictions
2022.04.04 11:52
Aussie Crypto Influencers Hit with Tough New Legal Restrictions
- Warnings from the Australian Securities and Investments Commission could have a significant impact on the Australian cryptocurrency industry.
- The commission’s latest information sheet outlines the potential traps that influencers and companies could fall into while promoting financial products.
- There was some confusion around the new cryptocurrency rules as to what exactly constitutes promotion as opposed to just the informing of financial products.
Recent warnings from the Australian Securities and Investments Commission (ASIC) regarding the appropriate conduct for financial influencers could have a significant impact on the Australian cryptocurrency industry.
The commission’s latest information sheet outlines the potential traps that influencers and companies could fall into while promoting financial products. The repercussions for disobeying the ASIC’s warnings could lead to corporations being fined millions of dollars and individuals being sent to prison for up to five years.
The guidelines set out in the information sheet do not specifically mention cryptocurrency influencers. However, the guidelines do apply to them since cryptocurrency investing services are seen as financial products.
There has been some confusion around the new cryptocurrency rules as to what exactly constitutes promotion as opposed to just the informing of financial products. One cryptocurrency blogger, Dave Gow of Strong Money, wrote on March 29 that almost any content related to cryptocurrency could influence someone to invest in or use a financial product.
Gow’s remarks follow the somewhat vague distinction made by ASIC between objective facts about a financial product and the manner in which influencers may present them.
The sheet states, “If you present factual information in a way that conveys a recommendation that someone should (or should not) invest in that product or class of products, you could breach the law by providing unlicensed financial product advice.”
Australian Liberal Senator, Andrew Bragg, has also shared his thoughts on the inconsistency between the new ASIC guidelines and how cryptocurrency is regulated in his country. He believes that the cryptocurrency industry should be exempted from the new restrictions.
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