As more and more people and businesses turn to digital assets, the cryptocurrency space is growing in popularity. The growing number of new crypto enthusiasts is skyrocketing every day. More and more people and brands are entering the industry with different goals.
While some people stick to daily token speculation in their investments, some opt for long-term investment goals. Some brands use the industry as a measure to grow their business, primarily through growing their customer base.
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Despite the growing movement in the global use of cryptocurrencies, there is still a great ignorance of the assets. Moreover, with its high volatility risks, the possibility of capital loss is exceptionally high. As a result, many jurisdictions apply certain regulatory measures on cryptocurrencies and most transactions.
Recent regulatory enforcement in Australia has broken, which is meant to serve as a safeguard for the public. The Australian Securities and Investments Commission (ASIC) has issued new warnings for financial influencers. The advisory, centered on proper conduct, could have a significant impact on the country’s crypto industry.
The ASIC factsheet outlines regulatory action against companies and influencers who may deliberately or unknowingly promote financial products. Records reveal the companies could face penalties of paying millions of dollars once they disregard ASIC’s warnings. From the individuals, they could get up to five years in prison.
Promotion Definition in ASIC New Warnings Against Cryptocurrency Influencers
Although the disclaimer does not specifically name crypto influencers, they could be implied in the guidelines, as crypto investment services are considered financial products.
For businesses and individuals who are still unsure whether inclusive services exist to break the law, ASIC has made a prominent statement. The commission wrote that they should consider whether their content provides financial services that are still not permitted.
The confusing central part of the new rules is to explain what constitutes the act of promotion as opposed to innocuous information about financial products. For example, on March 29, Dave Gow, a financial blogger from Strong Money, wrote that posting anything could influence someone to use or invest in a financial product.
Gow’s assessment hinged on ASIC’s distinction between objective facts about financial products and how influencers present themselves.
The commission said presenting factual information about a product involves making recommendations in which a person should or should not invest. Additionally, an influencer can break the rule by offering advice on unlicensed financial products.
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For his part, Senator Andrew Bragg of the Australian Liberal is exercising this gap between the new ASIC guidelines and the regulation of crypto in the country. He thinks there should be an exemption for the crypto industry based on current laws from recent restrictions.
Last month during Australia Blockchain Week, Senator Bragg recently presented a proposal regarding decentralized autonomous organizations. The senator remains a supporter of stricter regulations on cryptocurrencies.
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New Strict Legal Restrictions On Australian Cryptocurrency Influencers
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