Australian regulator says crypto investors ‘on their own’ for now

Sydney, November 22 (BUS) – Australia’s corporate watchdog said Monday it is working with lawmakers to develop rules for digital currencies but warned that many crypto assets remain unregulated at the moment, leaving investors in such products “alone”. .

In his first public comments since the country’s largest bank revealed plans to introduce cryptocurrency trading, Australian Securities and Investments Commission (ASIC) Chairman Joe Longo told investors to be careful when buying unprotected products.

“Consumers should approach investing in cryptocurrencies with extreme caution,” Longo said at the Australian Financial Review Conference, Reuters reported.

“At the moment, many crypto assets are likely not ‘financial products’…. for the most part, for the time being at least, investors are on their own.”

Earlier this month, the Commonwealth Bank of Australia broke industry ranks by being the first major bank in the developed world to offer a platform for retail clients to trade cryptocurrency.

“Cryptocurrency is on our doorstep, here and now, driven by extraordinary consumer and investor demand. The implications for consumers are likely to be massive,” said Longo.

The regulator said it has been working with lawmakers who have proposed changing laws to allow decentralized autonomous organizations (DAOs), which are governed by artificial intelligence rather than a board of directors, and a licensing system for cryptocurrency exchanges.

“ASIC does not seek to eliminate risks. But, we should not ignore them,” Longo added.

HF