Australian Regulator Warns of Lacking Crypto Protection
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The Australian Securities and Investments Commission cautioned investors about cryptocurrency risks, noting that they are «on their own» for the time being as efforts are underway to develop regulations.
Consumers should approach investing in crypto with great caution, said ASIC chair Joe Longo at the recent Australian Financial Review Conference.
At present many crypto-assets are probably not ‘financial products for the most part, for now at least, investors are on their own.
Not unlike markets elsewhere, demand for crypto-assets and related services is on the rise in the country with big four lender Commonwealth Bank of Australia recently becoming the first in the sector to roll out a retail offering that will cover 10 cryptocurrencies by 2022.
Crypto is on our doorstep, here and now, and being driven by extraordinary consumer and investor demand. The implications for consumers are potentially huge, Longo added.
ASIC does not strive to eliminate risk. But, nor should we ignore it.
Questions & Answers
Q.Why does the regulator state that investors are 'on their own' regarding cryptocurrency investments?
Why does the regulator state that investors are 'on their own' regarding cryptocurrency investments?
ASIC believes many crypto-assets are not currently classified as 'financial products'. This means existing protections for financial products may not apply, leaving investors without regulatory safeguards for now.
Q.Which major Australian bank has recently introduced a cryptocurrency offering for retail customers?
Which major Australian bank has recently introduced a cryptocurrency offering for retail customers?
The Commonwealth Bank of Australia, one of the country's big four lenders, has become the first in the sector to launch a retail offering. It plans to cover 10 cryptocurrencies by 2022.
Q.What is the Australian regulator's current stance on the risks associated with cryptocurrency?
What is the Australian regulator's current stance on the risks associated with cryptocurrency?
ASIC cautions investors about cryptocurrency risks, urging great caution. While it doesn't aim to eliminate risk, it acknowledges the potentially huge implications for consumers due to high demand.
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