You can also read this news on COINTURK NEWS: Global Regulations Shape the Future of Cryptocurrency bitcoin Markets
Cryptocurrency markets are more significantly influenced by global regulations than by short-term price movements. The law has been slow to define crypto, but concrete steps are being taken to prevent further delays. The United Kingdom, Asian countries, the EU, and others have already taken action. And Turkey will bring its regulatory draft to the Parliament before the end of January.
US Crypto Advertising Report
The Financial Industry Regulatory Authority (FINRA) reported in its latest publication that 70% of crypto advertisements in the US region did not comply with the rules. The institution, which reported that most of the communications related to crypto contained “false, exaggerated, promising, inappropriate, or misleading” claims, believes that the rules regarding this matter are being disregarded.
The report published today was based on the examination of advertisements for over 500 crypto assets starting from November 2022. According to the regulatory body, more than 70% of the communications examined contained “potential significant violations” of public communication rules.
FINRA Senior Director Ira Gluck wrote the following;
“With the growth in this market and the increasing interest in crypto assets, the potential harm caused by problematic communications has also increased. “For sufficient information to assess a crypto asset investment or service, the communication must clearly define the risks and characteristics.”
Crypto Advertising Regulation
Turkey is expected to address the issue of advertising in its crypto regulation, which is anticipated to be brought to the Parliament before the end of January. Similar to the United Kingdom, decentralized exchanges in Turkey will have their advertising and communication activities restricted. Moreover, the same restrictions are expected to be applied to global exchanges (with allowances for local branches).
The FINRA report could bring a bigger issue for crypto in the coming period. Violations potentially involve misleading claims related to crypto and misrepresentations of how federal securities laws’ protections apply to digital assets, which could lead to sanctions.
Following the collapse of FTX in November 2022, FINRA initiated a review of public communications related to crypto. The damage to the image of crypto caused by many malicious actors and misleading guidance has laid the groundwork for today’s situation. In particular, the “guaranteed returns” emphasis by institutions offering crypto staking (as in the case of Gemini Earn) has drawn the ire of regulatory bodies and politicians to this area.
The post first appeared on COINTURK NEWS: Global Regulations Shape the Future of Cryptocurrency Markets