According to several digital assets attorneys, Including popular disclaimers such as “This is not financial advice” may not protect them from the law.
Matthew Nielsen, a U.S. securities lawyer from Bracewell LLP, tells us that influencers who often say “This is not financial advice,” which these words cannot protect them from the law because “the federal government and State securities laws strongly stipulate who can provide investment advice.
Liam Hennessy, Australian financial lawyer Gadens, a partner at Gadens, described these “warnings” as “useless,” while Michael Bacina, an Australian digital lawyer from Piper Alderman, added: This is not a magic word that, once spoken, can deny liability.”
Nielsen cited the recent Kim Kardashian case as a good example, with Kardashian being charged by the SEC for failing to disclose how much she was paid to promote EthereumMax to her followers.
Crypto community influential Mason Versluis, also known as Crypto Mason, who has more than a million followers on Tik Tok, said that despite using the disclaimer that: “This is not financial advice,” but it is important to keep in mind that It has to be someone who does what some influential people say.
He also stressed that How difficult it is to determine which projects will end up in a rug pull, as influencers often only have contact with the project’s marketing team and generally do not. “Any developer or owner”
Ivan Vantagiato, Australian Crypto Influencer Known as Crypto Serpent, which has 68,000 followers on Tik Tok, says influencers should do due diligence to find crypto projects before they promote it.
Hennessy believes the best way for influencers to protect themselves. That is, they must be able to specify that “Which token is a security and which is not a security?”
Meanwhile, Bacina noted that Influencers residing in Australia are required to have a license to provide financial advice and “no disclaimer will provide protection.”
The post Crypto Lawyers Warn!! Putting in the words “This is not investment advice” doesn’t mean you will go to jail appeared first on Bitcoin Addict.