The U.K.’s Advertising Standards Authority said last week that it had issued notices to over 50 companies that advertise cryptocurrencies, asking them to review their ads to ensure compliance with existing rules.
The ASA has published several rulings about the advertising of cryptocurrencies which fall within its remit. Ads for cryptocurrencies have been ruled misleading and socially irresponsible and also in breach of rules which apply to ads for financial products.
In Australia, it’s a pretty unregulated field. Grey Yanco, ASIC’s executive director of market supervision said advice on cryptocurrency and digital currency could not be monitored by ASIC due to loopholes caused by cryptocurrency not being registered as a financial product.
He told the ABC the lack of protections were ‘concerning’ for the commission.
‘ASIC is not able to regulate crypto assets that are not financial products. So if you do invest in those products, you’re effectively on your own,’ he said.
And I would add the general advertising standards in Australia provide little or no protection other than advertising shall not be misleading or deceptive or be likely to mislead or deceive and should be clearly distinguishable as an ad.
So I believe the template of the UK reforms should be copied here. And the black hole where ASIC has no role in supervising crypo needs to be closed.
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