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Crucial Crypto Regulation Developments and Advertising Scrutiny

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You can also read this news on BH NEWS: Crucial Crypto Regulation Developments and Advertising Scrutiny
Global bitcoin regulations are becoming increasingly significant in the cryptocurrency market, surpassing the importance of short-term price movements. The legal system has been slow to define cryptocurrencies but is now taking concrete steps. The UK, Asian countries, the EU, and others have already taken action, and Turkey is expected to introduce regulatory draft legislation to its Parliament before the end of January.
The US Financial Industry Regulatory Authority (FINRA) has reported that 70% of crypto advertisements in the US do not comply with regulations. The communications are often misleading or exaggerated, according to a report analyzing over 500 crypto-related ads since November 2022.
FINRA’s Senior Director, Ira Gluck, emphasized the increased potential harm from problematic communications in the growing market. He stated that communications must clearly define the risks and characteristics of a crypto asset or service to provide sufficient information for evaluation.
Turkey is anticipated to address advertising in its upcoming crypto regulations, likely imposing restrictions on decentralized exchanges’ advertising and communications, similar to those in the UK. There’s also talk of applying similar restrictions to global exchanges, with allowances for local branches.
FINRA’s report suggests that future crypto regulations may face significant challenges. Violations could lead to sanctions for misleading claims and incorrect representations of how federal securities laws apply to digital assets. The scrutiny began after FTX’s collapse in November 2022, highlighting the damage from malicious actors and misleading promotions, such as the “guaranteed returns” claims from crypto staking organizations.
The post first appeared on BH NEWS: Crucial Crypto Regulation Developments and Advertising Scrutiny

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