The Australian Securities and Investments Commission cautioned investors about cryptocurrency risks, noting that they are «on their own» for the time being as efforts are underway to develop regulations.
Consumers should approach investing in crypto with great caution, said ASIC chair Joe Longo at the recent 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.
Not unlike markets elsewhere, demand for crypto-assets and related services is on the rise in the country with big four lender Commonwealth Bank of Australia recently becoming the first in the sector to roll out a retail offering that will cover 10 cryptocurrencies by 2022.
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 added.
ASIC does not strive to eliminate risk. But, nor should we ignore it.