The Australian Securities and Investments Commission (ASIC) is reportedly increasing its surveillance on the crypto market and issuing fresh warnings. The regulator has criticized cryptocurrency investments, stating that digital tokens are “created out of nothing.” ASIC chair Joseph Longo has also raised concerns about the unclear structure of the beleaguered Binance exchange and its CEO Changpeng Zhao.
Stricter Crypto Regulations by 2025
According to a report by an Australian daily, ASIC plans to tighten its cryptocurrency laws by 2025. The regulator will introduce new legislation focusing on the risks associated with cryptocurrencies. Longo advises caution when dealing with cryptocurrencies, stating, “The whole crypto story to my mind remains one that we should be very, very, very cautious about.”
“But I do worry about people who think that it’s an activity that you could equate with superannuation or having a mortgage or buying some property.”
– Joseph Longo, ASIC Chair
He further emphasizes that many digital tokens are traded in an opaque and non-transparent manner. Longo reveals that AISC is currently handling four legal cases related to cryptocurrencies. He warns investors to be careful before investing in crypto.
“My key message remains: be careful before you put your money into crypto.”
– Joseph Longo, ASIC Chair
Aussies Entering the Crypto Market
The warnings and new legislation come at a time when the Australian Digital Assets Survey, 2023 reveals that 906,000 Australians are likely to enter the crypto market within the next 12 months. Longo states that once the legislation is passed, ASIC will receive additional funding to address crypto-related issues.
ASIC deputy chair Sarah Court weighs in on crypto regulations in Australia, highlighting the importance of both design and enforcement. She states, “Crypto has been a critical part of the enforcement that we’ve been doing this year.” Court assures that if there is misconduct in the crypto industry, ASIC will continue to prioritize and take enforcement action.
“If we see misconduct though that raises significant issues in the same way as these other cases then absolutely we will continue to prioritize and take enforcement action.”
– Sarah Court, ASIC Deputy Chair
