Chainalysis prompts Australia to crack down on misleading crypto ads

Caroline Malcolm, head of international policy at Chainalysis, expects new Australian rules governing encrypted advertising, promotions and consumer protection to take a similar path When they are in place within the next year, they will go to the UK.

“I think we’re more likely to see something similar to the UK model that’s really focused on fighting misleading advertising or advertising that doesn’t present opportunities and risks.”

At the Chainalysis Links event in Sydney on June 21, Malcolm told Cointelegraph that this means crypto products and services are treated similarly to 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 state the level of risk associated with investing in cryptocurrencies.Malcolm pointed out that Singapore has taken Different ways By effectively banning all cryptocurrency marketing to retail customers.

“It’s not about banning advertising or banning the sale of certain assets to certain parts of the community, but really making sure there’s no misleading advertising that discloses what you’re actually buying when you go into the industry,” she said.

In addition to the advertising rules, Malcolm said there will be some consumer protection measures, such as requiring cryptocurrency exchanges to verify that their customers understand the risks of investing, as part of their onboarding process.

“When you join a cryptocurrency exchange or platformyou need to answer a few questions about […] The level of risk in the area or the nature of a particular risk. “

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

First Australian Conference

Tuesday’s Chainalysis Links event marked the first face-to-face meeting of Australia’s blockchain data platform. Around 100 participants from the crypto and traditional business and government sectors attended.

Australia’s parliament has been sending strong signals that it is necessary Regulate digital assets market.

In October 2021, Australia’s technology and financial hub Senate committee released long-awaited recommendations on how cryptocurrencies and digital assets should be regulated.

related: Binance Australia CEO: Regulations will establish higher crypto standards

In March, the conversation was further advanced with a consultation paper on “Secondary Service Providers of Crypto Assets: Licensing and Custody Requirements,” which sought feedback on minimum standards of conduct and consumer protections for crypto asset service providers.

Malcolm said she expected any changes to Australia’s advertising, promotion and consumer protection laws over the next six to 12 months, but said it would also depend on the priority of cryptocurrency regulation. the recently elected Labor governmentcame to power in May.

“We’re three weeks away from the election. So we haven’t heard anything yet. But I certainly hope to hear something before the end of the year about where they see this timeline […] a piece of legislation.