Australian regulator says crypto investors 'on their own' for now

Earlier this month, Commonwealth Bank of Australia broke industry ranks by becoming the first main-street bank in the developed world to offer a platform for retail customers to trade cryptocurrencies.

November 23, 2021 01:12 pm | Updated 01:13 pm IST - SYDNEY

Commonwealth Bank of Australia

Commonwealth Bank of Australia

Australia's corporate watchdog said on Monday it was working with lawmakers to develop rules for digital currencies but warned many crypto assets remained unregulated for now, leaving investors in such products "on their own".

In his first public comments since the country's largest bank unveiled plans to offer cryptocurrency trading, Australian Securities and Investments Commission (ASIC) chair Joe Longo told investors to be cautious buying products that had no protection.

(Sign up to our Technology newsletter, Today's Cache, for insights on emerging themes at the intersection of technology, business and policy. Click here to subscribe for free.)

"Consumers should approach investing in crypto with great caution," Longo told an Australian Financial Review Conference.

"At present many crypto-assets are probably not 'financial products' .... for the most part, for now at least, investors are on their own."

Earlier this month, Commonwealth Bank of Australia broke industry ranks by becoming the first main-street bank in the developed world to offer a platform for retail customers to trade cryptocurrencies.

Also Read | Australian regulator seeks feedback on managing 'risky' crypto assets

"Crypto is on our doorstep, here and now, and being driven by extraordinary consumer and investor demand. The implications for consumers are potentially huge," Longo said.

The regulator said it was working with lawmakers who have proposed changing laws to allow decentralised autonomous organisations (DAOs), which are governed by artificial intelligence rather than a board of directors, and a licensing regime for crypto exchanges.

"ASIC does not strive to eliminate risk. But, nor should we ignore it," Longo added.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.