South African regulator mandates crypto ad risk warnings Christian Nwobodo · 1 hour ago · 1 min read South Africa’s ARB has urged crypto ads providers to warn that investing in crypto assets may result in loss of capital.1 min read Updated: January 23, 2023 at 11:47 am Cover art/illustration via CryptoSlate The advertising regulatory board (ARB) of South Africa has directed crypto asset providers and influencers to communicate in their advertisements that investing in crypto assets may result in capital loss.ARB stated in its report on Jan.23 that crypto advertisement providers must provide a balanced message about the returns, benefits, and risks associated with the asset.Regulated crypto ads Advertisement providers must clearly state that past performance does not guarantee favorable future performance, ARB said.“Advertisements must expressly and clearly state that investing in crypto assets may result in the loss of capital as the value is variable and can go up as well as down.” The regulator also urged crypto asset providers to discourage cryptocurrency investment using credits.In the case where Influencers are involved in promoting advertisements, they are mandated to share only factual information about the crypto asset, according to the ARB report.The South African regulator also urged crypto influencers and ambassadors to desist from offering trading or investing advice to their audience about any crypto asset.
Australian Finance Minister says crypto could be regulated as financial product Oluwapelumi Adejumo · 5 mins ago · 1 min read Crypto lobby groups in the country have argued against the broad classification of all crypto assets as financial products.1 min read Updated: January 23, 2023 at 12:36 pm Cover art/illustration via CryptoSlate Australian Financial Minister Stephen Jones said there was a “good argument” to regulate crypto assets as financial products, The Sydney Morning Heral reported on Jan.23.Except for Bitcoin (BTC), other crypto assets are mainly used as a store of value for investment or speculation, according to Jones.He said: “[There is a] good argument that they[other crypto assets] should be treated like a financial product.” The minister noted that the FTX collapse showed the need for crypto regulation.He continued that the Australian government is focused on regulating crypto assets that act like financial products.Jones added that there was no need to set up a “completely separate regulatory regime for something that is, for all intents and purposes, a financial product.” The Australian minister said that the government would soon reveal crypto assets it plans to regulate through its “token mapping” exercise.Lobby groups disagree with broad classification Meanwhile, Australia’s crypto group Blockchain Australia is at loggerheads with the Australian Securities and Investments Commission (ASIC) and the Commonwealth Bank over broadly classifying all crypto assets as financial products.
The lobby group reportedly said a broad classification of all crypto assets as financial products would harm the investment and growth of the sector.The group also warned that this could lead to the loss of jobs in the industry.
Another lobby group, the Australian Bitcoin Industry Body (ABIB), argued that lumping all businesses interacting with crypto into only one category will make regulatory efforts for the industry’s sub-sectors challenging.The Australian government has recently stepped up efforts to regulate the crypto industry following FTX’s collapse.The government promised to establish a framework to guide the licensing and regulation of crypto service providers.Massachusetts bill for special blockchain commission to assess government usage Liam ‘Akiba’ Wright · 1 hour ago · 3 min read The Special Commission bill was filed on the same day as another bill related to increasing consumer protection against crypto exchanges.3 min read Updated: January 22, 2023 at 6:50 pm Cover art/illustration via CryptoSlate Two bills related to crypto were introduced to the Massachusetts House of Representatives on Jan.19.
The first related to a new “special commission on blockchain” and the second on “protecting consumers in cryptocurrency exchanges.” Given the recent publicity received through the FTX collapse, it is unsurprising that officials would look to add extra consumer protection.
The creation of a ‘special commission’ on blockchain could also be a bullish indicator for the citizens of Massachusetts, providing the commission receives adequate information to analyze.Special Commission Massachusetts Representatives Josh S.Cutler and Kate Lipper-Garabedian submitted the bill entitled “An Act establishing a special commission on blockchain and cryptocurrency” on Jan.19 to create a steering group within the Massachusetts House to look at blockchain technology.“For the purposes of making an investigation relative to blockchain technology to develop a master plan of recommendations for fostering the appropriate expansion of blockchain technology in the Commonwealth.” The commission is planned to contain 25 members, including the House Speaker, the minority leader, and the president of the Senate, suggesting, if passed, the commission is to be taken seriously.
The commission is designed to focus on several key areas – The feasibility, validity, admissibility, and risks related to using blockchain technology for government usage within Massachusetts.- Whether its definition of blockchain is sufficient concerning enforceable laws.- The potential impact on the Massachusetts state revenues of digital assets and cryptocurrencies.- Government and business advisory availability, with a focus on cannabis retail stores.- How energy consumption may need to be regulated.
– Any additional consumer protections required for retail users of crypto.- “Best practices for enabling blockchain technology to benefit the commonwealth.” – Which state entities should be responsible for the enforcement of blockchain regulations.- Any other blockchain-related topic suggested by the commission.“The commission shall take input from a broad range of stakeholders with a diverse range of interests affected by state policies governing emerging technologies, privacy, business, finance, the courts, the legal community, and state and local government.” According to the bill, the commission will report its findings within one year of the authorization as it looks to “foster a positive blockchain technology environment.” Consumer protection A further bill was filled with the title “An Act protecting consumers in cryptocurrency exchanges.” The bill was submitted by Representative Susan L.Moran to “protect” consumers engaging with crypto exchanges.
The bill is directed at businesses that offer crypto trading or conversion operating in the state of Massachusetts or with Massachusetts customers.However, given the specific wording of the bill, the new rules should not apply to Decentralized Exchanges (DEXs) within Massachusetts.The bill describes a Massachusetts customer as “a person who uses a virtual currency exchange service whose information on record with or available to said exchange service indicates a Massachusetts home address.” Therefore, any site able to operate within the U.S.without any KYC requirements would not be affected.A vital aspect of the bill is the requirement for crypto exchanges operating in the state of Massachusetts to pay the state an annual “Registration fee” of 5% of gross revenues.Further, businesses must retain any advertising materials used to promote crypto for no less than seven years.All marketing must also include the business’s legal name and confirmation of its registration to operate a cryptocurrency business.To attempt to combat incidents such as the FTX collapse reoccurring, the bill also requires businesses to “disclose in clear, conspicuous writing all material risks to the person associated with the particular virtual currency business activities in which it engages.” Virtual Currency Insurance Fund The bill also introduced the concept of a Virtual Currency Insurance Fund to protect customers against fraud.
The insurance pool will be funded through payments related to any violations of the newly proposed regulations.Each violation shall come with a fine of up to $5,000 per violation.Customers will be able to receive grants from the fund if they have crypto assets held with an exchange “that is unable to meet any monetary obligations to any of its customers.” The United Arab Emirates virtual assets regulator has said no crypto entity has been granted the full market product (FMP) license.According to the country’s minister of state for artificial intelligence and the digital economy, Omar Sultan Al Olama, no crypto entity has been “able to onboard any customers even last week.” VARA Has Yet to Grant a Full Market Product License The United Arab Emirates’ virtual assets regulator, the Virtual Assets Regulatory Authority (VARA), has not issued any operating license to date, the country’s digital economy minister Omar Sultan Al Olama has said.
Speaking at the World Economic Forum (WEF), Al Olama reportedly said that no crypto exchange entity including Binance and FTX has been granted the full market product (FMP) license.As per Al Olama’s remarks published on Laraontheblock, no crypto is yet to complete the VARA’s four-step process.
Accordingly, this means “no one was able to onboard any customers even last week.” In March 2022, the VARA said it had granted Binance a minimal viable product (MVP) license which allowed it to offer an approved range of virtual asset-related services to suitably qualified retail and institutional investors in Dubai.Similar licenses have also been issued to other crypto exchange platforms.Some crypto exchanges have seemingly used these licenses when touting their credentials to potential clients.However, the VARA has now clarified that the licenses issued to Binance and other crypto exchange platforms are only “Provisional” at stage one, or “MVP-Preparatory” at stage two.VASPs Not Allowed to Offer Services to Mass Retail Consumers According to VARA, these licenses are only issued to allow virtual assets service providers (VASPs) to fulfill pre-conditions and begin readiness.The regulator also reiterated Al Olama’s position that no crypto entity has been given the full license.
“No VARA licensee has, to date, been awarded an MVP-Operating permit, to provide regulated services or activities to their specifically authorised market segment(s) in the Emirate.Any information or representation to the contrary is inaccurate and misleading,” the regulator clarified in a market notification on its website.Echoing Al Olama’s message at the WEF, the regulator said the MVP licensees are not allowed to offer their services to mass retail consumers “until the stage gate (4) FMP licence approval has been secured.” Tags in this story What are your thoughts on this story? Let us know what you think in the comments section below.Terence Zimwara Terence Zimwara is a Zimbabwe award-winning journalist, author and writer.
He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.Image Credits: Shutterstock, Pixabay, Wiki Commons Disclaimer: This article is for informational purposes only.It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies.Bitcoin.com does not provide investment, tax, legal, or accounting advice.Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.Top posts Uncategorized4 hours ago NYDFS Releases Guidance On Importance Of Segregation And Separate Accounting For Customer Funds In Crypto Industry On Monday, the New York Department of Financial Services (NYDFS) published guidance on custodial structures to help protect customers’ money…Beacon chain withdrawals5 hours ago Ethereum Developers Commence Finalizing Shanghai Upgrade ‘Shadow Fork’ For Testing And Bug Identification Ethereum developers have begun finalizing the Shanghai upgrade “shadow fork,” according to software engineer Marius van der Wijden.The “shadow…
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