Regulation of the cryptocurrency industry has become the hot topic of this month as several new changes come into play. For the most part, governments are seeking favorable regulation of the cryptocurrency space, eager not to stifle their country’s innovation in the sector. However, governments also need to prioritize consumer safety, something we are now seeing most notably in the United Kingdom.
UK Advertising Crackdown
The UK Advertising Standards Authority (ASA) has issued a notice to crypto companies regarding their marketing behavior, requesting a review of advertisements to ensure they comply with newly released guidelines.
More than 50 crypto firms were targeted in the new move, which aims to protect consumers against misleading advertising. Some big names that received notices as part of the exercise include Coinbase, Crypto.com, eToro, and Luno. The ASA has given companies until 2 May to comply with new regulations, which require advertisements to state that cryptocurrencies are highly volatile and remain unregulated in the UK. Furthermore, advertisements shouldn’t suggest that investing in crypto is easy or suitable for anyone, and should not create a sense of urgency or fear of missing out.
Biden’s Crypto Executive Order
Across the pond in the United States, President Joe Biden recently signed an executive order on cryptocurrency that many believe to be favorable of the industry. The order, which is touted as “the first whole-of-government strategy to protect consumers, financial stability, national security, and address climate risks,” mentions a Central Bank Digital Currency (CBDC) and the responsible development of digital assets. The order is generally seen as positive while also a move by the U.S. to maintain its hold over global monetary policy while benefiting from new advances in financial technology.
Australia’s Favorable Crypto Tax
In a similar fashion, Australia has hinted at plans to formulate positive crypto regulations with favorable taxation laws that promote growth of the digital assets industry. NSW state senator Andrew Bragg spoke at a conference held by Blockchain Australia about crypto taxation, the practice of de-banking, licensing of crypto exchanges, and crypto custody. He stated that Australia has the opportunity to become a blockchain hub and should not miss out on that chance.