Australian Regulators Sets Investor Security as its Priority
- Australia is set to begin a token mapping exercise to regulate the crypto industry.
- They were 4,783 reports of crypto investment scams in 2021.
Australia’s Securities and Investments Commission (ASIC) has reportedly announced plans to oversee crypto activities within the next four years to ensure local investors’ safety. The financial regulator pledged to monitor crypto assets and the Decentralized Finance (DeFi) market.
The commission recently released its “Corporate Plan,” unveiling a four-year strategic approach that would run till 2026. ASIC noted that priorities would be given to “digitally enabled misconducts” as the country further opens up to the crypto world. Joe Longo, chair of ASIC, added that the commission would focus heavily on scams and crypto assets within the specified period. He said,
Our regulatory environment is changing and evolving — climate risk, our aging population, emerging data and digital technologies, and significant volatility in the crypto-assets market are all having a transformational impact.
Joe revealed that reports showed that there were 4,783 reports of cryptocurrency investment scams, resulting in alleged losses of $99 million in 2021. Those figures have since increased in 2022 with the rise of crypto-related scams.
According to the commission, focusing on crypto assets and frauds will protect local investors from further losses and, among other things, support the creation of an effective regulatory system that would oversee exchange-related products and boost public awareness of the risks associated with crypto-assets and DeFi investments.
In a recent report, the ASIC chair further warned against crypto investment which he said was risky and highly volatile. Joe advised local investors to do their due diligence in researching before investing. He remarked,
ASIC is not against innovation and will do whatever it can to look for lawful ways of using the underlying technology, the distributed ledger, and blockchain technology, but that’s not to be conflated or confused with investing, inverted commas, in crypto assets.
Australia Clarifies its Crypto Stance
The comments from the ASIC chair come days after the nation’s ruling party, the Labour Party, clarified its crypto regulation stance. The new administration announced plans to conduct a “token mapping” exercise before the end of the year. The exercise will reportedly serve as the base for future policies on cryptocurrency and digital assets.
Over the last few months, cryptocurrency activities in Australia have increased, but the country’s stance on regulation has been shaky. Exchange operators are simply required to adhere to the general Corporations Act rules and the anti-money laundering laws of the Australian Transaction Reports and Analysis Centre (AUSTRAC).
Experts believe crypto regulation would make it safer for locals to transact with exchanges. With the token mapping exercise on the way, it is only a matter of time before Australia unveils a full regulatory policy for the crypto industry.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
