On 12 June 2025, the Australian Securities and Investments Commission (ASIC) joined a global coalition of nine international regulators in a coordinated crackdown on unlawful social media “finfluencers” during a Global Week of Action Against Unlawful Finfluencers, who promote high-risk financial products, including cryptocurrencies, without proper licensing. ASIC issued warning notices to 18 Australian finfluencers suspected of unlawfully promoting high-risk products like contracts for difference (CFDs), over-the-counter (OTC) derivatives, and cryptocurrencies, or providing unlicensed financial advice. In addition to ASIC, the nine regulators involved in the Global Week of Action Against Unlawful Finfluencers included Canada’s Alberta Securities Commission, Autorité des marchés financiers (Quebec), British Columbia Securities Commission, Ontario Securities Commission; Hong Kong’s Securities and Futures Commission; Italy’s Commissione Nazionale per le Società e la Borsa; United Arab Emirates’ Securities and Commodities Authority; and the United Kingdom’s Financial Conduct Authority. These global regulatory authorities employed arrests, website takedowns, warning notices, and consumer education campaigns to curb unauthorised activities.
The crackdown aims to protect investors and maintain market integrity, particularly among young Australians, with Moneysmart research showing 41% seek financial advice from social media. Unauthorised finfluencers promoting high-risk crypto products can lead to unwarranted consumer losses, especially when they exaggerate success prospects or omit risks.
Many finfluencers promote cryptocurrencies or trading strategies on social media, often showcasing lavish lifestyles to lure followers into “closed communities” or paid forums promising trading secrets. ASIC has flagged such practices as potentially misleading, especially when finfluencers lack an Australian Financial Services (AFS) licence or authorised representative status.
Under the Australia’s Corporations Act of 2001, providing financial product advice or arranging deals in financial products requires an AFS licence, unless exempt. Unlicensed finfluencers risk severe penalties, including up to five years’ imprisonment for individuals and millions in fines for corporations. Additionally, misleading or deceptive conduct, even by unlicensed individuals, is prohibited and enforceable under the Australia’s Corporations Act of 2001.
Since ASIC released INFO Sheet 269 in March 2022, many finfluencers have either adjusted their content to comply with regulations or obtained licences. Australian Financial Services licensees have also tightened due diligence and monitoring of finfluencers to prevent unauthorised advice. For crypto finfluencers, compliance requirements involve:
i. Obtaining an AFS licence or acting as an authorised representative of a licensee.
ii. Ensuring promotional content is not misleading or deceptive.
iii. Clearly disclosing credentials and licensing status to followers.
ASIC will conduct targeted monitoring of finfluencer content and will actively take action where harm is detected. Recent enforcement includes the December 2022 Federal Court ruling against finfluencer Tyson Robert Scholz, who operated without an AFS licence between March 2020 and November 2021. Consumers and industry participants can report unlicensed activity via ASIC’s How to Report Misconduct webpage or by calling 1300 300 630. Finfluencers discussing cryptocurrencies and other high risk investments, must carefully navigate Australia’s financial services laws. ASIC recommends seeking legal advice to ensure compliance, particularly when promoting trading strategies or investment products.
