Saying 'No Financial Advice' Won't Save You Going to Jail: Crypto Lawyers
Australian and US digital asset lawyers tell Cointelegraph that overall the words themselves are "rather useless" .
Interview
Crypto influencers may need to practice what they preach and “do their own research” when it comes to sharing their crypto tips.
According to several digital asset lawyers, the popular disclaimer "this is not financial advice" may not protect them in the eyes of the law.
U.S. securities attorney Matthew Nielsen of Bracewell LLP told Cointelegraph that while its "best practice" for influencers discloses that "this is not financial advice", simply saying the term does not will not protect from the law because the "Federal and state securities laws heavily regulate who can offer investment advice."
Australian financial regulation lawyer Liam Hennessy, a partner at Gadens, explained that the "advice warnings" are "on the whole pretty useless", while Australian digital lawyer Michael Bacina of Piper Alderman added that they are not "magic words which when uttered will disclaim all responsibility.”
Crypto-influencers and celebrity ambassadors are increasingly coming under the scrutiny of regulations, especially in the United States.
Nielsen cited the recent Kim Kardashian case as an example, where Kardashian was charged by the SEC for failing to disclose the amount she received for promoting EthereumMax to her followers.
Influencers are feeling the pressureCrypto influencer Mason Versluis, aka Crypto Mason, who has over a million followers on Tik Tok, told Cointelegraph that he can't stress enough to his followers that his content should not be "regarded as financial advice".
Versluis said, however, that despite using the disclaimer "this is not financial advice", it's important for influencers to be aware that some people "make financial moves based on what some people say. influencers".
He also pointed out how difficult it can be to determine if a project will end up in a “rug pull” situation, as influencers “just deal with the marketing team” and usually have no contact. "with developers or owners". ."
Australian crypto influencer Ivan Vantagiato, aka Crypto Serpent, who has amassed 68,000 followers on TikTok...
Australian and US digital asset lawyers tell Cointelegraph that overall the words themselves are "rather useless" .
Interview
Crypto influencers may need to practice what they preach and “do their own research” when it comes to sharing their crypto tips.
According to several digital asset lawyers, the popular disclaimer "this is not financial advice" may not protect them in the eyes of the law.
U.S. securities attorney Matthew Nielsen of Bracewell LLP told Cointelegraph that while its "best practice" for influencers discloses that "this is not financial advice", simply saying the term does not will not protect from the law because the "Federal and state securities laws heavily regulate who can offer investment advice."
Australian financial regulation lawyer Liam Hennessy, a partner at Gadens, explained that the "advice warnings" are "on the whole pretty useless", while Australian digital lawyer Michael Bacina of Piper Alderman added that they are not "magic words which when uttered will disclaim all responsibility.”
Crypto-influencers and celebrity ambassadors are increasingly coming under the scrutiny of regulations, especially in the United States.
Nielsen cited the recent Kim Kardashian case as an example, where Kardashian was charged by the SEC for failing to disclose the amount she received for promoting EthereumMax to her followers.
Influencers are feeling the pressureCrypto influencer Mason Versluis, aka Crypto Mason, who has over a million followers on Tik Tok, told Cointelegraph that he can't stress enough to his followers that his content should not be "regarded as financial advice".
Versluis said, however, that despite using the disclaimer "this is not financial advice", it's important for influencers to be aware that some people "make financial moves based on what some people say. influencers".
He also pointed out how difficult it can be to determine if a project will end up in a “rug pull” situation, as influencers “just deal with the marketing team” and usually have no contact. "with developers or owners". ."
Australian crypto influencer Ivan Vantagiato, aka Crypto Serpent, who has amassed 68,000 followers on TikTok...
What's Your Reaction?
