Recent warnings from the Australian Securities and Investments Commission (ASIC) about how financial influencers should act could have a big impact on the Australian market for cryptocurrency in the country.
The commission’s most recent information sheet details the pitfalls that influencers and businesses may encounter when advocating financial goods. The consequences of violating ASIC’s warnings could include millions of dollars in fines and up to five years in prison for individuals.
The information sheet’s standards make no mention of cryptocurrency influencers. However, because cryptocurrency investing services are considered financial products, the guidelines apply to them.
There has been significant uncertainty about the new bitcoin legislation regarding what constitutes advertising versus simple information about financial items. Dave Gow, a cryptocurrency writer at Strong Money, said on March 29 that almost any article about bitcoin can make someone want to invest in or use a money product.
Gow’s comments are in line with ASIC’s vague distinction between objective facts about a financial product and the way influencers may promote them, which Gow agrees with.
Fact sheet: “If you give factual information in a way that implies that someone should or should not invest in a certain product or class of products, you may be breaking the law for giving unlicensed financial product advice.”
Andrew Bragg, an Australian Liberal Senator, also commented on the discrepancy between the new ASIC recommendations and the way cryptocurrency is governed in his country. According to him, the bitcoin industry should be immune from the new regulations.
