Crypto

Chainalysis Tips Australia To Crack Down On Misleading Crypto Ads

Chainalysis’s head of international policy Caroline Malcolm expects Australia’s new rules governing cryptocurrency advertising, promotion and consumer guarantees to follow a similar path to the UK when they come into force next year.

“I think we’re more likely to see something similar to the UK model that really focuses on cracking down on misleading advertising or advertising that doesn’t present the risks alongside the opportunities.”

During the Chainalysis Links event in Sydney on June 21, Malcolm told Cointelegraph that this meant treating crypto products and services similarly to financial products and services when it comes to advertising and promotion.

In March, the UK Advertising Standards Authority (ASA) released new guidance requiring advertisers to clearly state the level of risk associated with investing in cryptocurrencies. Malcolm noted that Singapore took a different approach by effectively banning all public marketing of cryptocurrencies to retail clients.

“This is not about banning advertising or banning the sale of particular assets to particular parts of the community, but really making sure that there is no misleading advertising, that there are disclosures about what you are actually buying when you enter the industry. ,” she said.

Malcolm said that in addition to the rules on advertising, a number of consumer protection measures will also be put in place, such as requiring cryptocurrency exchanges to verify that their clients understand the risks of investing as part of their onboarding process.

“When you get on board with some kind of crypto exchange or platform, you have to answer a few questions about […] the level of risk in this space or the nature of the specific risks”.

“It’s more this idea that there’s some kind 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 in-person conference for the blockchain data platform in Australia. Approximately 100 participants attended from the crypto and traditional business and government sectors.

Australia’s parliament has been sending strong signals about the need to regulate the digital asset market.

In October 2021, the Senate Committee for Australia as a Technology and Financial Center published its long-awaited recommendations on how it could regulate cryptocurrencies and digital assets.

Related: Binance Australia CEO: Regulations Will Set Higher Standards in Crypto

In March, the conversation moved further with a consultation paper on “Crypto Asset Secondary Service Providers: Licensing and Custody Requirements” seeking feedback on crypto asset service providers’ minimum standards of conduct and safeguards for consumers. .

Malcolm says he expects changes to Australia’s consumer protection, promotion and advertising laws to be implemented within the next 6-12 months, but said this would also depend on the priority of crypto regulation for the Labor government recently. elected, who came into power in May.

“We are three weeks after the elections. So we haven’t heard any news yet. But I would certainly expect to hear something before the end of the year in terms of where they see the timeline for this. […] piece of legislation.