Joe Longo, Chairman of the Australian Securities and Investments Commission (ASIC), spoke at the Australian Wealth and Financial Supervaluation Summit on November 22nd at the Fullerton Hotel in Sydney.
The rise of the cryptocurrency, he said, was “nothing extraordinary and inevitable”.
As a market and company regulator, Longo admits a certain fascination for decentralized autonomous organizations or DAOs. He said they pose certain challenges to national regulators like ASIC:
“To paraphrase a concept familiar to corporate lawyers, who does ASIC go to to define the mindset and will of a DAO? It is not clear who is to blame when something goes wrong or does not go as planned or predicted. It is also unclear how the DAO itself could be held liable in court. ”
Longo recognized the high consumer demand for crypto products and services in Australia and noted that ASIC still has important political decisions to make in the crypto area: “Wherever we come from from a political perspective” […] Cryptocurrencies are on our doorstep here and now, fueled by unusual demand from consumers and investors. ”
While his comments made investors cautious, the Chairman noted that the Commonwealth Bank’s recent entry into the crypto market by providing crypto trading features to the users of their application is an important step in the evolution of the cryptocurrency market:
“Truth [that] Australia’s largest bank has proposed a way for their retail clients to get exposure to cryptocurrencies. Yes, it’s just a test project, but the overall direction is very clear. This debate is no longer on the fringes of the financial services industry. “
Australian interest in the blockchain space seems to have grown over the past few months. On Friday, November 19, the CEO of the country’s Commonwealth Financial Institution said he was more concerned about missing out on the development of this emerging technology than the risks involved. Back on November 2nd, the Australian Senate spoke brilliantly about the industry, praising the country’s crypto advocates for their willingness to accept regulations.