TL;DR:
- China formalized new online financial marketing rules that reinforce the ban on promoting cryptocurrencies.
- The regulation, signed by eight regulatory bodies, classifies the issuance and trading of digital currencies as illegal financial activity.
- Regulators in Italy, Australia, and the United Kingdom are analyzing similar measures against financial influencers on social media.
China has tightened its already extensive ban on cryptocurrencies by finalizing the “Administrative Measures for Online Marketing of Financial Products“, known as Announcement No. 9. The new rules will take effect on September 30 and restrict digital marketing of financial products exclusively to licensed institutions and legally authorized third-party platforms.
The text prohibits any organization or individual from offering online marketing services or any form of assistance that facilitates illegal financial activities. Explicitly, the regulation incorporates the issuance and trading of digital currencies within that definition, reinforcing the stance adopted in 2021, when the People’s Bank of China declared all cryptocurrency transactions illegal.
China Tightens Controls Over Cryptocurrencies
The measures were signed by eight bodies, including the People’s Bank of China, the Ministry of Industry and Information Technology, the State Administration for Market Regulation, the Securities Regulatory Commission, and the Cyberspace Administration of the country. Authorities argue the initiative is a consumer protection policy aimed at curbing misleading or aggressive promotion of opaque or leveraged products, including livestream sales and viral campaigns.
Global Offensive Against Financial Influencers
The regulatory tightening implemented in China is not an isolated case. Regulators across several jurisdictions are moving in the same direction. In Italy, the securities authority CONSOB distributed in January a European Securities and Markets Authority guide warning that European Union advertising and investment rules fully apply to crypto promotion on social media.
In Australia, the Australian Securities and Investments Commission (ASIC) warned in March that Generation Z investors increasingly rely on social media personalities and artificial intelligence to make investment decisions. According to ASIC’s own data, approximately 23% of young investors hold cryptocurrencies in their portfolio.
In the United Kingdom, the Financial Conduct Authority (FCA) led a week of coordinated action with 17 regulators from around the world, including the Hong Kong Securities and Futures Commission and the Capital Markets Authority of the United Arab Emirates. The campaign resulted in three criminal proceedings in the country, around 50 warning alerts, and 120 content removal requests directed at social media platforms.
