Argentine legislatures have begun debating a bill to regulate advertising for cryptocurrency companies’ products to protect consumers from the risks of losing funds.
Argentina is one of the Latin American countries whose residents actively use cryptocurrencies. The country’s legislators are discussing the adoption of laws on the advertising of cryptocurrency products in order to prevent the increasing cases of fraud. Senator Eduardo Andrada has introduced a bill that will regulate how individuals and organizations promote crypto assets.
According to Andrada’s initiative, any advertising related to cryptocurrencies must include a disclaimer about the risks associated with investing in digital assets. Andrada also proposed introducing education for citizens to make it easier for them to distinguish fraudulent cryptocurrency schemes from good ones.
Members of the Argentine Securities Commission Sebastian Negri and Martín Breinlinger participated in the discussion of the bill. According to Negri, he often sees advertisements that mention the growth of bitcoin to $69,000, and people are given guarantees that the situation will repeat itself, so they need to invest now. Negri believes that this should not be allowed – companies should not promise potential investors guaranteed profits and rush them with investments.
However, Senator Angela Negri disagrees that lawmakers are capable of regulating cryptocurrency advertising. In her opinion, this can lead to the fact that the Senate will get carried away with other minor issues related to the industry, while more important tasks should be addressed.
After the collapse of the FTX exchange, many regulators tightened their control over cryptocurrency companies. According to Bloomberg, the US Federal Trade Commission (FTC) has already begun investigating cryptocurrency ads. In addition, the UK Advertising Standards Authority (ASA) banned an NFT promotion campaign launched by cryptocurrency exchange Crypto.com and Turtle United on social media.
Source: Bits
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