In the past week, three countries, Spain, the United Kingdom and Singapore, introduced regulations to govern the promotion of ads that are related to cryptocurrencies.
The reason they gave for the regulation was because of the consumer risks that were associated with investing in digital assets. Though experts believe that this regulation will soon be adopted globally, people question if this clampdown will be efficient.
The Queen of England released a report in July last year that summarized the position of the UK as regards the promotion of digital assets and the steps they have taken to regulate them. According to the chief security regulator of Spain, there are now rules governing crypto companies that plan on promoting their ads to thousands of people, whether using social media or not. The limitations in Singapore are even stricter than what is found in the other countries, which allows digital asset companies to advertise only on their websites.
What all three countries are asking for is transparency and fairness by these crypto firms.
Supporters Of The Regulation
Before now, crypto firms were free to promote their ads without any form of regulation. Only giant firms that were into tech were censoring cryptocurrency adverts on their website. Recently, financial regulators have joined the train.
A partner at XReg Consulting, Nathan Catania, told Cointelegraph that he is pleased that this regulation is coming at the right time to ensure that consumers are not misled into investing in crypto assets when they have little knowledge of the risks involved. Catania’s colleagues are also of the opinion that other countries will follow suit with their regulations on the promotion of cryptocurrency.
The Situation Globally
Presently, there has been no published data on how the restriction will affect crypto companies and the finance of various individuals. So, any information that is available would be mere speculation.
The CEO of popular exchange platform Binance, Changpeng Zhao is of the opinion that the recent trend will in no way affect the buying and selling of digital assets because most transactions are carried out by conversations between individuals.
No one knows if this trend of regulation on digital assets will be extended to other parts of the world because the government of the United States is not showing any interest in regulating crypto ads.
Raul Garcia, the principal in charge of financial services at Kaufman Rossin, a financial firm based in Florida, told Cointelegraph that the US is focusing on taxation and protection of Investors. Garca noted that crypto ads can be seen virtually everywhere in the United States.
In the future, several crypto companies will have no option but to migrate to the US where the rules guiding cryptocurrency are not as strict as most European nations. There are no resistance to crypto ads which makes the US a better option for those who want to cash out from digital assets.