The chairman of the Australian Securities and Investments Commission (ASIC) stated that cryptocurrencies are “a huge boost by consumer and investor demand,” noting that “the impact on consumers can be huge.” Securities regulators are currently working with lawmakers to develop cryptocurrency rules.

Regulators see “extraordinary consumer and investor demand” for cryptocurrencies

Australian Securities and Investments Commission (ASIC) Chairman Joe Longo talked about cryptocurrencies at the Australian Financial Review Super and Wealth Summit on Monday.

“Consumers should invest in cryptocurrency very carefully,” he said, emphasizing its lack of investor protection. However, Longo believes:

Encryption is at our doorstep, here and now, and driven by extraordinary consumer and investor demand. The impact on consumers can be huge.

While noting that securities regulators are working with lawmakers to formulate cryptocurrency rules, he emphasized that many crypto assets are currently not regulated, so investors can only rely on themselves when investing.

“Many of the current crypto assets may not be financial products,” he explained. “ASIC has provided some guidance for exchange-traded funds related to crypto assets-they are at least financial products and traded on licensed exchanges, so there will be some protection there.”

Nevertheless, the head of ASIC warned:

In most cases, at least for now, investors are on their own.

Earlier this month, Australia’s largest bank, the Commonwealth Bank of Australia (CBA or Commbank), Announce It will begin to allow some customers to buy, sell and hold cryptocurrency directly using its app. The pilot program cooperates with the cryptocurrency exchange Gemini.

The bank’s CEO subsequently stated that although there are risks in participating in encryption, there are also Greater risk Not participating.

The ASIC chairman pointed out:

The fact that Australia’s largest bank has proposed a cryptocurrency exposure method for its retail customers illustrates this point. Yes, this is just a pilot project, but the overall direction is clear. This debate is no longer on the fringe of the financial services industry.

At the same meeting on Monday, Senator Jane Hume of the Victorian Liberal Party also talked about cryptocurrencies.She said we must admit Encryption is not a fashionAnd added that decentralized finance (defi) offers huge opportunities.

What do you think of the comments of the Australian Securities Regulatory Agency? Please let us know in the comments section below.

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