The Securities and Exchange Commission ("SEC") has issued new rules which tighten the standards and requirements, and also the regulatory oversight on the advertising of digital assets. The new rules took effect on 1 September 2022. The main objective of the new rules is to introduce more stringent requirements on advertisement of digital asset, which include a restriction on the content of advertisements, the display of warnings for investment risk, the reduction of channels through which the advertisements can be placed (i.e. for the cryptocurrency, the digital asset operator can advertise only through its official channels), and the requirement to disclose details related to the advertisements and expenses thereof, which include the use of influencers and bloggers, to SEC within certain prescribed timeframes.
