Crypto ads play a crucial role when it comes to influencing even ordinary people towards crypto and digital assets but they can be fatal if they are false
Recently head of International Policy at prominent crypto and blockchain data aggregator firm, Chainalysis, Caroline Malcolm shared what she has to think about the Australian government’s plan of action about crypto ads, especially the misleading ones. Malcolm expected that new rules of Australia focusing on governing crypto promotion , advertising and safeguarding consumers would be somewhat similar to the approach that the United Kingdom had taken.
Caroline Malcolm stated that she thinks it is more likely to see that there would be something parallel to the model that the United Kingdom had adopted regarding the crackdown on misleading advertisements or such advertising that does not tell about the risks involved in the investment along with the opportunities.
Malcolm was speaking at the Chainalysis Links event organized in Sydney on 21st June where she told that this would mean to treat crypto related products and services both in similar ways as financial products and services in terms of advertising and promotion. She said that there is no motive behind putting any ban on advertisements or banning the sale to or some particular assets, rather it will ensure that advertisements would not be misleading.
It was in March when Advertising Standards Authority (ASA) of the United Kingdom released new guidelines that would require advertisers to clearly mention the level of risk that is involved in crypto investment. Malcolm has noted that Singapore also took a totally different approach towards the same by effectively putting a ban on all crypto related marketing publicly to retail customers.
In addition to the advertising rules, Malcolm also stated that there would also be several measures that would need to be put in place for consumer protection. Such measures include that crypto exchanges need to verify that the users or customers completely understand the associated risks of investing and think of it as a part of the same onboarding process.
She further said that when someone gets onboard to some crypto exchange or platform, then there are several questions that need to be answered in advance that includes the level of risk that could be faced during the time one spends in space. Malcolm thinks that this could create some type of barrier or threshold that anyone just can’t enter by jumping off inside and start trading.
Source: https://www.thecoinrepublic.com/2022/06/24/how-is-australia-going-to-suppress-the-misleading-crypto-ads-in-the-region/