A preliminary project is under discussion in the Argentine senate, which is aimed at regulating the way crypto is promoted in the country by organizations and individuals.
There are still discussions taking place about the project and its objective would be to educate consumers regarding the risks associated with crypto investment and to also provide protection against investments in Ponzi schemes.
Crypto advertisement regulation
An increasing number of countries are taking steps to ensure that advertising channels are not used for carrying out crypto scams.
One of the Latin American countries that have seen rapid crypto adoption is none other than Argentina, which is now mulling over the idea of establishing advertisement laws specifically for cryptocurrencies.
Senator Eduardo Andrada is promoting the discussion, along with others, and its focus is to create awareness amongst people regarding their potential uses and other details related to these assets.
Likewise, the project in question has another objective; ensure that consumers do not become victims of Ponzi schemes and other crypto-related scams.
A number of crypto schemes were presented in the meeting, which had been advertised and promoted through different media.
The meeting was attended by members of the Argentine Securities Commission, Martin Breinlinger, and Sebastian Negri.
One of the suggestions that were put forward includes ensuring that any publicity related to crypto would have to have slogans that highlight the risks associated with such investments.
The views of the senators and other attendants were different when it came to the proposed project. Negri highlighted the benefits that potential investors would be able to enjoy if such a law was approved.
He said that Bitcoin’s price had gone from $10,000 to $69,000. Many advertisements promise this kind of profitability to those who are thinking about entering the crypto market now.
But, all of this is false advertising because there is no way to guarantee any profits. Even though this is understood, people still fall for it because such profitability has happened.
Lack of regulation
Negri went on to say that such things were not likely to happen where traditional financial institutions like banks are concerned.
However, this is certainly possible in the case of crypto because the ecosystem is not regulated properly in most countries, including Argentina.
Yet, Senator Angela Negri was not in favor of the idea of regulating crypto advertisements because she said that the Senate would get embroiled in other crypto-related issues as a result.
She stated that she was not in favor of the project because she does not like regulations. She added that she couldn’t see how regulations could be implemented on something that is unregulated.
It would just be the first step that they take towards regulation and nothing more. This subject has been broached in other countries as well and they have already taken steps to address it.
Spain introduced rules back in January that were targeting crypto publicity via influencers. Likewise, the UK had stated back in July that it would monitor any misleading crypto campaigns.