‘Vacuum’ on crypto regulation opens door to influencers

“As a principle, we consider that regulation should encourage consumers to be informed. A situation where consumers… are practically prevented from getting advice that takes into account their personal circumstances is the antithesis of that principle and is likely to disadvantage those consumers,” it said in a submission.

“FinTech Australia members ask that crypto asset finfluencers be regulated just as ASIC is seeking to regulate finfluencers in the traditional financial services sector.”

The comments touch on just one of the many complex questions facing Treasury officials as they seek to introduce a regulatory regime for the cryptocurrency sector.

In a separate submission, the Consumer Action Law Centre highlighted the growth in crypto businesses advertising in sport. It called for curbs similar to those on gambling ads during live sporting broadcasts likely to be seen by children.

“Just like betting odds in sports becoming almost completely ingrained in sports programming, crypto’s current trend will likely result in speculative crypto assets being associated with sports teams, and ingrained in our psyche as an acceptable way to risk money,” the submission by chief executive Gerard Brody said.

Choice also said crypto scams cost consumers $129 million last year, and it argued digital currency exchanges should have to reimburse consumers if they did not adequately prevent scams on their platforms.

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