March 29, 2024

Argentina Senate Discusses Bill to Regulate Cryptocurrency Advertising

Article Reading Time:
2 minutes.

Argentina Senate Discusses Bill to Regulate Cryptocurrency Advertising

Argentine legislators have begun discussing a bill to regulate the advertising of cryptocurrency companies' products to protect consumers from the risks of losing funds.

Argentina is one of the Latin American countrieswhose residents actively use cryptocurrencies. The country's legislature is discussing the adoption of laws on the advertising of cryptocurrency products to prevent increasing cases of fraud. Senator Eduardo Andrada introduced a bill that would regulate the way individuals and organizations promote crypto assets.

According to Andrada's initiative, any advertisingrelated to cryptocurrencies, must include a disclaimer regarding the risks associated with investing in digital assets. Andrada also proposed introducing training for citizens to make it easier for them to distinguish fraudulent cryptocurrency schemes from good projects.

Members took part in the discussion of the billArgentine Securities Commission Sebastian Negri and Martin Breinlinger. According to Negri, he often sees advertisements that mention Bitcoin rising to $69,000, and people are given guarantees that the situation will happen again, 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 into investing.

However, Senator Angela Negri did notI agree that legislators are capable of regulating cryptocurrency advertising. In her opinion, this could lead to the Senate being carried away by other minor issues related to the industry, when it should be solving more important problems.

After the collapse of the FTX exchange, many regulatorsstrengthened control over cryptocurrency companies. According to Bloomberg, the US Federal Trade Commission (FTC) has already begun to investigate cryptocurrency advertising. 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.