It happens too often now fin influencers (financial influencer, ed) surreptitiously advertising cryptocurrencies. In such cases it is not clear who sent the advertisement and whether it is actually an advertisement. This should soon be a thing of the past with new national legislation. Cryptocurrency providers are therefore no longer allowed to offer complicated or dangerous products. In addition, it is also prohibited to deliberately misadvise buyers.
Rules tightened
At the European level, legislation on cryptocurrencies has already been further tightened. For example, at the end of June the European Commission introduced a new package of laws to regulate the cryptocurrency market. But the implementation of that package called MiCA (Markets in Crypto Assets Regulation) requires national legislation. And the advisory period on that starts today.
Not just for fin influencers there will be stricter rules, but also for platforms. For example, providers will soon have to compensate their customers if a platform is hacked or cryptocurrencies are stolen. Furthermore, service providers are no longer allowed to use their customers’ credit balances for proprietary trading, the finance ministry said.
Protection
Despite tightened regulations, there are still risks when trading cryptocurrencies. However, European cryptocurrency legislation needs to offer more protection to cryptocurrency buyers. Currently, the cryptocurrency market is unregulated, which means consumers can lose money if they fall victim to fraud or scams. This will soon change as there will be more oversight of the cryptocurrency market.