{"id":324757,"date":"2022-04-04T12:50:34","date_gmt":"2022-04-04T16:50:34","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=324757"},"modified":"2022-04-04T12:50:34","modified_gmt":"2022-04-04T16:50:34","slug":"australian-regulator-to-punish-crypto-influencers-who-violate-the-law","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/australian-regulator-to-punish-crypto-influencers-who-violate-the-law","title":{"rendered":"Australian Regulator To Punish Crypto Influencers Who Violate The Law"},"content":{"rendered":"

The Australian Securities and Investments Commission (ASIC) is set to place new restrictions against financial influencers believed to be misleading the public about cryptocurrency.<\/p>\n

The regulator is reacting to the recent increase in promotional activities by crypto influencers that fail to tell their audience about the true nature of crypto investments.<\/p>\n

The latest Information Sheet provides details about the penalties influencers and the firms that hire them will face when advertising financial products.<\/p>\n

Violators Could Spend Five Years In Jail<\/h2>\n

ASIC added that failure to adhere to its warnings could result in penalties of millions of dollars for businesses and up to a 5-year jail sentence for individuals.<\/p>\n

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While the new law doesn’t specifically mention cryptocurrency influencers, it also applies to them since crypto investing<\/a> is also seen as a financial product. The regulator has also warned the financial influencers who are not sure whether their promotions violate the law.<\/p>\n

“Think about your content carefully and whether you are providing unlicensed financial services,” ASIC stated.<\/p>\n

However, some people are still confused about the new rules as it concerns the difference between promotion and harmless information about financial products.<\/p>\n

Crypto Shouldn’t Be Part Of The Law<\/h2>\n

Last week, a financial blogger from Strong Money Dave Gow stated that writing almost anything could influence someone’s decision to invest or use any financial product.<\/p>\n

The assessment is based on the vague distinction the regulator has made between the facts about financial products<\/a> and how influencers may present them.<\/p>\n

Australian Liberal Senator and proponent of standard crypto regulations Andrew Bragg also pointed at the lack of a clear distinction between the guidelines of ASIC and the regulation of crypto in the industry. Presently, crypto is not regulated as a financial product in Australia. According to him, the crypto industry should not be included in the new restrictions under the current laws.<\/p>\n

“Crypto is currently unregulated and not a financial product… I believe we can do more,” he said, adding that the regulator’s current policy makes the law applicable to the crypt industry.<\/p>\n

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