Chainalysis advises Australia to crack down on misleading crypto ads

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Chainalysis’s international policy manager Caroline Malcolm expects Australia’s new rules governing crypto advertising, promotion and consumer protections to follow a similar path to the UK’s when they come into force next year.

“I think we’re more likely to see something along the lines of the UK model which really focuses on cracking down on misleading advertising or advertising that doesn’t present the risks alongside the opportunities.”

At the Chainalysis Links event in Sydney on June 21, Malcolm told UKTN that this meant treating crypto products and services the same as financial products and services when it comes to advertising and promotion.

In March, the UK’s Advertising Standards Authority (ASA) issued new guidelines requiring advertisers to clearly disclose the level of risk associated with investing in cryptocurrencies. Malcolm noted that Singapore has taken a different approach by effectively banning all public marketing of crypto to retail customers.

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“It’s not about prohibiting advertising or prohibiting the sale of particular assets to particular parts of the community, but really about making sure that there is no misleading advertising, that there are disclosures about what you are actually buying when you enter the industry. ,” she says.

Malcolm said that in addition to the rules on advertising, a number of consumer protection measures will also be put in place, such as requiring crypto exchanges to verify that their customers understand the risks of investing in the part of their integration process.

“When you embark on any kind of crypto exchange or platform, you need to answer a few questions about […] the level of risk in this space or the nature of specific risks.

“It’s more this idea that there’s some sort of barrier to entry that you can’t just jump over and start trading.”

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First Australian Conference

Tuesday’s Chainalysis Links event marked the first in-person conference for the blockchain data platform in Australia. Around 100 attendees attended, coming from both the crypto and traditional business and government sectors.

The Australian parliament has sent strong signals on the need to regulate the digital asset market.

In October 2021, the Senate Committee for Australia as a Technology and Financial Hub released its highly anticipated recommendations on how it could regulate cryptocurrency and digital assets.

Related: Binance Australia CEO: Regulation Will Set Higher Crypto Standards

In March, the conversation continued with a consultation paper on “Secondary Crypto-Asset Service Providers: Licensing and Custody Requirements” which sought comments on minimum standards of conduct for providers. of crypto-asset services and guarantees for consumers.

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Malcolm says she expects any changes to Australia’s advertising, promotion and consumer protection laws to come into effect within the next 6-12 months, but said that would also depend on the priority given to the regulation of crypto by the recently elected Labor government, which has come into force. power in May.

“We are three weeks after the elections. So we haven’t had any news yet. But I would certainly expect to hear something before the end of the year with regard to the timing of this […] piece of legislation.