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The Australian Securities and Investments Commission (ASIC) has warned financiers promoting crypto-currency projects that they can provoke investors to invest money recklessly.
ASIC has posted a warning about the responsibility of influencers for advertising financial and cryptocurrency projects. The document states that such individuals and the companies that employ them may fall into the trap of promoting financial products. Under Australian law, cryptocurrencies are also classified as financial products.
The commission warns that ignoring warnings could result in millions of dollars in fines for corporations and up to five years in prison for individuals. The regulator calls on influential financiers to make informed decisions by agreeing to advertise cryptocurrency projects:
“Think carefully about your content and whether you’re providing unlicensed financial services.”
At the same time, the document explains the difference between promoting a cryptocurrency project and harmlessly informing about a product.
“If you provide factual information in a way that recommends that someone should (or should not) invest in that product or class of products, you could be breaking the law by providing unlicensed financial product recommendations,” the regulator explains.
However, Australian Senator Andrew Bragg (Andrew Bragg) believes that there is a discrepancy between the new ASIC recommendations and how cryptocurrencies are regulated in the country. He believes that in accordance with current legislation, the industry should be freed from these restrictions.
All over the world, regulators are cracking down on the advertising of cryptocurrencies, provoking investors to recklessly invest in dubious financial products. For example, in March, the UK Advertising Standards Authority (ASA) sent notifications to more than 50 cryptocurrency companies to ensure that their ads comply with the established requirements.
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