Chainalysis expects Australia to crack down on misleading cryptocurrency ads

Chainalysis’ head of international policy, Caroline Malcolm, expects Australia’s new rules governing crypto advertising, promotion and consumer protection to be implemented next year, following the lead of the United Kingdom.

"I think we're more likely to see something like the UK model that really focuses on combating misleading advertising or advertising that presents opportunities without addressing risks."

At the Chainalysis Links event in Sydney on June 21, Malcolm told Cointelegraph that this means treating crypto products and services in a similar way to financial products and services in terms of advertising and promotion.

In March, the U.K.’s Advertising Standards Authority (ASA) published new guidance requiring advertisers to clearly state the level of risk associated with investing in cryptocurrencies. Malcolm noted that Singapore has taken a different approach, effectively banning all overt marketing of cryptocurrencies to retail customers.

"It's not banning advertising or banning the sale of specific assets to specific parts of the community, it's really making sure there's no misleading advertising and when you get into the business, there's disclosure about what you're actually buying," she said.

In addition to advertising regulations, there will be a range of consumer protections, Malcolm said, such as requiring cryptocurrency exchanges to verify that their customers understand the risks of investing as part of their onboarding process.

“When you go into a certain crypto exchange or platform, you need to answer some questions about […] the level of risk or the nature of the specific risk in that space.”

"What's more, there's some kind of barrier to entry where you can't just start trading."

Chainalysis's first conference in Australia

Tuesday's Chainalysis Links event marked the blockchain data platform's first live conference in Australia. There were around 100 participants from the cryptocurrency and traditional business and government sectors.

The Australian Parliament has been sending strong signals about regulation of the digital asset market.

In October 2021, Australia's Senate committee as a technology and financial center released highly anticipated recommendations on how to regulate cryptocurrencies and digital assets.

This conversation was furthered in March with the adoption of a consultation paper on “Secondary Service Providers of Cryptoassets: Licensing and Custody Requirements.” The document seeks feedback on minimum standards of conduct and consumer safeguards for crypto asset service providers.

Malcolm said she expects any changes to Australia's advertising, promotion and consumer protection laws to be introduced in the next six to 12 months, but she said it would also depend on the Labor government's approach to cryptocurrency regulation, which was recently elected in May. importance.

"It's been three weeks since the election. So we haven't heard anything. But I certainly hope to hear something before the end of the year, about the timeline for this […] legislation."