ASIC, the Australian Securities and Investment Commission recently issued a strong statement saying that all crypto assets will remain unregulated, with the country seeking solutions aimed at keeping it competitive.
In a statement to crypto investors, Joe Longo who chairs ASIC said the country needs to exercise a lot of caution when dealing with cryptocurrencies and the need to remain vigilant of the potential downfalls. The stern warning by ASIC chair heavily revolves around the fact that crypto products seem to fail when it comes to having tight consumer protection measures.
“Consumers should approach investing in crypto with great caution. At present many crypto-assets are probably not ‘financial products’ …. for the most part, for now at least, investors are on their own,” said Longo.
But Longo was not all negative about crypto admitting that “crypto is on our doorstep” and its demand continues to rise, something that has caught the attention of both novice and experienced individuals who are keen to fight out more.
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Longo further stated that the implications for consumers are huge, and that consumers need to advance through such ventures knowing that they’ve been warned. Longo disapproved a criticism that ASIC was in a push to do away with risk from investment, stating that ASIC wasn’t in a move to risk out any sort of investment, but have it dealt with in the right way.
Australia’s cautious move on crypto happens at a time when the Commonwealth Bank is hot on the heels of introducing Bitcoin trading and the country’s central lender has named crypto as “fads.”
Even though crypto investments have seen several investors profiting from them, on the bad side, there have been some disturbing reports to do with crypto scams. In the early months of 2021, DeFi network reported $10.5bn that was stolen with many Australians trying to accumulate the losses of close to $101m this year alone due to several crypto scams.