- The cryptocurrency market is growing in popularity as more consumers and businesses turn to digital assets.
- Every day, the number of new crypto fans grows exponentially. More people and companies are entering the business for various reasons.
- While some people want to participate in the token on a daily basis, others prefer to invest for the long term.
- Some companies are looking to the sector to help them grow their company, especially by increasing their consumer base.
Strict regulatory restrictions
Despite the growing popularity of cryptocurrencies around the world, there is still a lot of confusion regarding them. Furthermore, due to the high volatility risks, the danger of capital loss is extremely high.
As a result, several jurisdictions have imposed regulatory restrictions on cryptocurrencies and the majority of transactions.
Recent regulatory enforcement in Australia has exploded, apparently to safeguard the general public. New cautions for financial influencers have been issued by the Australian Securities and Investments Commission (ASIC).
The notice, which focuses on appropriate conduct, has the potential to have a substantial impact on the country’s crypto industry.
ASIC’s Information Sheet highlights the regulatory measures against corporations and influencers who may market financial products consciously or unconsciously.
According to the documents, businesses that ignore ASIC warnings risk paying millions of dollars in penalties. Individuals might face up to five years in prison if they are found guilty.
What are legislations for Cryptocurrency Influencers?
Though the warning didn’t specifically include crypto influencers, the guidelines could imply that they exist because crypto investing services are considered financial goods.
ASIC issued a leading statement for firms and individuals who are still wondering if there are inclusive services for breaking the law. According to the commission, they should assess if their content provides unauthorized financial services.
The most confusing aspect of the new guidelines is defining what is a promotion, as opposed to the harmless information on financial items.
According to the commission, providing accurate information about a product involves making suggestions about whether or not a person should invest in it. In addition, an influencer can break the prohibition by giving financial product advice while not being licensed.
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Source: https://www.thecoinrepublic.com/2022/04/20/new-tough-regulatory-measures-on-aussie-cryptocurrency-influencers/