The Australian Securities and Investments Commission Chair Joe Longo told a business gathering that regulators and Treasury are working closely on the ‘crypto-universe.’
Traditional bankers and brokers are being bypassed by cryptocurrency and other decentralized organizations, which is creating a new regulatory and investment agenda.
Many crypto-assets are not yet classified as “financial products,” making it impossible for financial advisers to provide advice or for ASIC to take a stance.
ASIC has previously issued some recommendations on crypto-asset-linked exchange-traded funds.
“At the very least, they’re financial items sold on a regulated market, so there will be some safeguards,” Mr. Longo explained. “However, for the time being, investors are mostly on their own.”
Senator Hume reminded the gathering that “this is not a fad” for Australia. “An asset class that has caught hearts and minds,” she added of cryptocurrencies. “But, regardless of what you think about it, it’s a technology that isn’t going away anytime soon.”
Many authorities across the world remain “skeptical” of developments in the Bitcoin business, according to Reserve Bank head of payments policy Tony Richards.
Despite a recent Senate probe revealing that 17% of Australians are investing in bitcoin, Dr Richards questioned how broadly cryptocurrencies are held in Australia.
Senator Hume stated that Australia must “blaze its own trail” in terms of blockchain-based decentralized money.
“Decentralized money, supported by blockchain technology, will bring enormous potential; Australia must not be left behind due to apprehension about the unknown.” “Don’t become the person who stated in 1995 that the internet was only for geeks and criminals and that it would never become popular,” she said.
Traditional banks, brokerages, and exchanges are not used in Decentralized Finance, or DeFi. Instead, financial transactions are completed via blockchain-based technologies.
Mr Longo acknowledged to having a “fascination” with decentralized autonomous organizations, or DAOs, which are regulated by artificial intelligence in the form of smart contracts and record transactions using blockchain technology.
Senator Hume praised the Commonwealth Bank for allowing its 6.5 million clients to keep and utilize bitcoin and other cryptocurrencies through its banking app.
Mr Longo said it was “telling” that Australia’s largest bank was already providing a crypto-exposure option for its retail clients. “Yes, it’s just a trial experiment,” he said, “but the overarching aim is apparent.” “This discussion is no longer confined to the financial services industry’s periphery.”
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