Australia’s corporate watchdog said on Monday that it is working with politicians to draft legislation for digital currencies, but that many crypto assets remain unregulated for the time being, leaving investors “on their own.”
In his first public remarks since the country’s largest bank announced intentions to offer cryptocurrency trading, Australian Securities and Investments Commission (ASIC) chief Joe Longo warned investors to be wary when purchasing items with no safeguards. Longo told an Australian Financial Review Conference:
“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.”
Commonwealth Bank of Australia made history earlier this month when it became the first main-street bank in the developed world to offer a platform for retail clients to trade cryptocurrencies.
Cryptocurrency is on our doorstep right now, propelled by unprecedented consumer and investment demand. Longo believes that the repercussions for consumers might be enormous.
The regulator stated that it is collaborating with MPs who have suggested amending rules to allow decentralized autonomous organizations (DAOs) administered by artificial intelligence rather than a board of directors, as well as a licensing framework for cryptocurrency exchanges.
“ASIC’s goal is not to remove risk. But we shouldn’t disregard it either “Longo elaborated.