Krypto is powered by consumers and investors exceptional demand, says the Australian regulatory authority - regulation

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Krypto is driven by exceptional demand from consumers and investors, says the Australian regulatory authority

The chairman of the Australian Securities and Investments Commission (ASIC) says that Krypto "is driven by an exceptional demand by consumers and investors" and states that "the effects on consumers are potentially enormous". The securities supervisory authority is currently working with the legislator to develop rules for cryptocurrencies.

regulatory authority sees "extraordinary demand from consumers and investors" according to Crypto

The chairman of the Australian Securities and Investments Commission (ASIC), Joe Longo, spoke on the Super & Wealth Summit The Australian Financial Review on Monday about cryptocurrency.

"Consumers should take great care investments in crypto," he said, emphasizing the lack of investor protection. However, Longo said:

crypto is here and now on our door and is driven by an exceptional demand from consumers and investors. The effects on consumers are potentially enormous.

While he found that the securities supervisory authority was working with the legislator to develop rules for cryptocurrencies, he emphasized that many crypto-assets are currently not regulated, so that investors are on their own when investing.

"At the moment, many crypto assets are probably not financial products," he said. "ASIC has already given some information on listed funds that are linked to crypto-assets-at least these are financial products that are traded on a licensed stock exchange, so that there is a certain protection there."

Nevertheless, the ASIC boss warned:

The investors are largely on their own, at least for now.

At the beginning of this month, the Commonwealth Bank of Australia (CBA or Commbank), the largest bank in the country, announced that some customers will allow to buy, sell and maintain cryptocurrencies directly via the app. This pilot program is a partnership with the Gemini.

cryptocurrency exchange

The bank CEO then said that participation in crypto is risks, but there is to participate.

The ASIC chairman found:

The fact that Australia's largest bank already suggests a means of crypto exposure to their private customers is significant. Yes, it's just a pilot project, but the general direction is clear. This debate is no longer on the sidelines of the financial services industry.

At the same conference on Monday, the senator of the liberal party for Victoria, Jane Hume, also spoke about cryptocurrency. She said we have to acknowledge that Krypto is not a fashion phenomenon , and adds that the decentralized financing (defi) offers enormous opportunities.

What do you think of the comments of the Australian security supervisory authority? Let us know in the comment area below.

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