Blockchain technology is changing the world in diverse ways. It’s changing the way we see and interact with money. It’s dramatically revolutionizing our financial institutions, giving them a new outlook and underpinning cryptocurrencies.
Trading in cryptocurrency has become the new normal. The blogosphere is littered with ads promoting it and everything related to it. Some are misleading. And, If you have zero knowledge about their fluctuations and trade impulsively like many people who see cryptocurrency as a cash cow enterprise, you will only incur losses.
This and many other reasons have inspired some countries to come up with strict regulations to clamp down on cryptocurrencies and all their related services.
Why the strict regulations on cryptocurrency ads?
First of all, as stated earlier, some ads are created with the sole purpose of misleading the public and are termed “socially irresponsible.” Plus, the celebrity endorsement crypto scam advertisements don’t help matters. The ads have been crafted in such a way as to mislead the masses with poor knowledge, and the sad news is that online influencers sell them to their audience without doing their homework.
Without forgetting the fact that virtual currencies are volatile to a large extent. The result? People end up feeling cheated as they watch their money go down the drain.
Secondly, crypto has been widely used to promote shady deals and shady investments. Simply put, the existence of many fraudulent businesses has been tied to the coming of virtual currencies. This lawlessness has even led countries like China, Egypt, India, Iran, and Bolivia to ban it altogether.
Many have asserted that crypto has been used to funnel money to criminal sources, thereby supporting crimes such as money laundering, terrorism, drug trafficking, etc.
Advertisement Laws: List of Countries that Regulate Cryptocurrency Ads
We are going to provide you with a list of countries that have clamped down on crypto ads by employing the use of advertisement laws and broad legislation.
United Kingdom
More than 50 companies that run crypto ads have received a ” red alert” notice from the Advertising Standards Authority (ASA) of the UK. Currently, there are even plans on the ground to bring it under Financial Conduct Authority. In fact, ads have been banned from two companies in recent times. This is to give a hint on how the UK is not handling this matter with kid’s gloves. Now, firms have to review their ads and make sure they abide by the rules & regulations guiding their existence. The aim is not to ban trading activities but rather to institute regulations that will control crypto investment ads.
Singapore
Singapore seems to have implemented the strictest measures that include banning crypto ads even on social media and in public areas, especially if the ad was designed to target the general public. Even crypto ATMs are considered to be a form of ad and are not allowed in public areas. This means crypto companies are heavily limited from advertising to the public. However, they can only advertise on their site and social media accounts. Guidelines by the Singapore Monetary Authority on the Digital Payment Token Services.
China
In 2021, all cryptocurrency transactions were banned in China. The reason? To reduce financial crimes. The result? Bitcoin and other virtual currencies fell steeply.
However, transactions still take place online through foreign exchanges. The Chinese Government has continuously told its citizens that they would receive no form of protection if they continue to trade in virtual currencies online. Furthermore, cryptocurrency transfer has been promoted by the PBoC.
Spain
For any company to run a crypto ad, it must also include information on its risks. Regulators of the ad campaigns must be informed with at least a 10-day notice by those providing crypto services if their promotion targets over 100,000 people. These are parts of the rules as announced by Spain’s financial regulator, Comision Nacional del Mercado de Valores (CNMV). To put it succinctly, the ad must be balanced and fair enough before it must be shown to the public.
Turkey
Before 2021, cryptocurrency use was unregulated in Turkey. However, things changed in 2021 when crypto exchanges inadvertently collapsed. The Turkish Government decided to establish order in the market. First, they established that though cryptocurrency is legally an asset, it can’t be used as a payment method. Furthermore, if you’re a crypto service provider, you must comply with the AML/CFT obligations. Customers must be identified before a business relationship can be established. Suspicious transactions must be reported to relevant authorities, etc.
In Conclusion
All these regulations are just to save the public from financial losses and prevent them from trading impulsively. What do you think? Let us know.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up