Even though the crypto markets and investors have come a long way, there is still the need to create awareness. Many crypto influencers do so and produce content that educates their audience. However, a lot of them also take advantage of the situation and fulfill their own personal agendas. It could be by promoting scam projects, meme coins, orchestrating a pump and dump scheme, etc. So, the Australian Securities and Investments Commission (ASIC) has now levied restrictions on the country’s crypto influencers.
Australian crypto influencers face legal restrictions
The Securities and Investments Commission in Australia has introduced strict laws to ensure their citizens aren’t misguided by these so-called “crypto influencers.” If companies and influencers are found promoting financial products in any way, they can face millions of dollars in fines for institutions and up to 5 years in jail for individuals.
It will not just be limited to crypto influencers but any financial content creators who are found going against the new laws. ASIC has also issued a comment on those who are not sure whether they are going against the law or not. The commission said, “Think about your content carefully and whether you are providing unlicensed financial services.”
To this comment, one of the influencers said that writing about anything is good enough to influence someone to invest in the product. So, how will the differentiation between influencing and informing the audience will be made? The authorities replied that if the information is presented in a way that compels the audience to take an investment decision, then it might be against the law.
Is this new law good or bad?
To an extent, the new law will be great to protect investors against crypto scams. However, if you look at the bigger picture, it is clear that influencers will have a tough time curating their content. Information from Australian finance influencers will suffer because of the new laws. And since crypto is global, falling prey to such scams from influencers outside Australia is not off the cards.
Do you think that Australian citizens will be protected as its crypto influencers face legal restrictions? And will this move make things difficult for good content creators? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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