A crypto-advertisement-focused project has been brought under the scrutiny of and review by the Senate of Argentina.
The project aims at making the general public aware that crypto investment is highly risky and dangers include exposure to crypto Ponzi schemes.
With as many people learning and gaining awareness about cryptocurrencies, the situation will come under control pertaining to frauds and scams.
Like the rest of the world, the Argentinean authorities are also very concerned about the recent happenings within the crypto world.
Therefore, they want to deal with the situation as best as they can to ensure nothing of this sort ever happens again.
The road towards Laying down Crypto Promotional Ads Guidelines
The soccer world cup champion of 2022, Argentina, is now moving in the direction of laying down crypto advertisement guidelines.
In this connection, the country’s lawmakers have brought before the Senate a document containing a set of rules, policies, and guidelines.
Lawmakers commented that throughout the world steps have been taken for safeguarding the general public from highly risky asset class i.e. crypto.
They also said that there are some channels in the industry that are involved in scamming, hacking, and other such activities.
In this connection, it is necessary to prevent the general public and investors from falling into wrong hands, said the lawmakers.
Crypto Adoption in Argentina is On the Next Level
Like many Latin American countries, Argentina is amongst those where crypto adoption is on the next level. The country’s industry of digital assets is amongst the top five rapidly growing industries in the entire world.
Resultantly, crypto investment promotional advertisements could be seen on signboards, cubes, tunnels, sideways, transportation, etc. In addition, websites are also bombarded with crypto advertisements.
It is hence, in this connection, crypto advertisement rules and regulations have been drafted and are under scrutiny by the Senate.
Investors’ Focused Project
The document containing the crypto ad regulation plan has been submitted by Senator Eduardo Andrada and a few colleague Senators.
Andrada explained that they wanted to draw attention to crypto advertisements which promote genuine and fraudulent crypto investment schemes.
He also said that through the regulations, the general public will be educated with regard to digital assets, their potential risks, and dangers.
Andrada further explained that the main objective of the project is to safeguard investors against Ponzi as well as fraudulent crypto schemes.
In this connection, a meeting has been held in which, among Senators, officials of the Securities & Exchange Commission of Argentina also participated.
During the meeting, officials of the SEC identified several crypto Ponzi schemes active locally and worldwide. They also discussed the existence of several advertisements in the country which belong to fraudulent schemes.
The participants of the meeting arrived at a consensus that there has to be some mechanism with regard to crypto advertisements.
It was proposed that every crypto advertisement must make full disclosure of the potential risks and dangers associated with the crypto investment.
Difference of Opinion
Though there was consensus on the advertisement mechanism difference of opinion was also there, particularly with regard to the project.
SEC’s officials argued that the proposed law would encourage further investors to invest in crypto assets. They lectured that when Bitcoin’s value was rising there were ads making promises of doubling the price after some time.
They commented that though Bitcoin’s value doubled, however, promising something in an advertisement, which totally depends on market conditions, is unnecessary.
SEC’s official suggested that this segment of the advertisement can be cut out of the advertisement because it is misleading and deceiving.
On the other hand, one of the Senators namely Angela Negri disapproved of regulating crypto advertisements altogether.
She argued that it would be preposterous to regulate one aspect of an industry that entirely remains unregulated.
Negri then suggested that it is essential to first regulate the industry and then deal with other aspects of the industry.