Senate Considers Crypto Ad Regulation in Argentina

Currently, the project's goal is to prevent people from falling victim to crypto-related Ponzi schemes and to inform them of the risks involved with investing in cryptocurrencies. Many nations are taking preventative measures to prevent the spread of cryptocurrency scams through advertising channels. There has been some discussion of enacting laws regulating cryptocurrency-related advertising in Argentina, one of the LatAm countries with the fastest-growing cryptocurrency adoption. Sen. Eduardo Andrada and others are advocating for a discussion focusing on informing potential cryptocurrency users about the specifics of these assets. Another goal of this possible endeavor would be to safeguard cryptocurrency investors from fraud and Ponzi schemes. Several cryptocurrency schemes promoted and advertised through various media were presented at the meeting, which members of the Argentine Securities Commission, such as Sebastian Negri and Martín Breinlinger, attended. One of the suggestions was that warning slogans should be included in all advertisements for cryptocurrencies to make people aware of the potential downsides of investing in them.

The proposed project was met with mixed reactions from senators and their aides. Sebastian Negri outlined the opportunities for investment that would arise with the passage of such a law. It was his words:

With the rise of Bitcoin from 10,000 to 69,000 dollars, what they did was promise people that the profitability that occurred the previous year was going to be repeated for those who entered now. That is false advertising. One cannot promise guaranteed profits. That’s a basic rule, but it was happening.

Negri added that due to the country's lax regulatory environment, cryptocurrencies could flourish where conventional financial institutions like banks cannot.

An Argentinian Senator, however, has spoken out against the idea of regulating crypto advertising, claiming that it could lead to the Senate becoming bogged down in other crypto-related issues.

I don’t like this project. I don’t like regulations and I don’t really understand how to regulate something that isn’t regulated. On the other hand, it sounds to me that it is a first step towards a regulation.

Many other nations have already enacted rules concerning this issue. Beginning with social media influencers, Spain passed its regulations in January to rein in crypto-related publicity. The United Kingdom made a similar pledge in July, saying it would be more vigilant against deceptive crypto campaigns.