The chairman of the Australian Securities and Investment Commission called cryptocurrencies extremely volatile assets with a high level of risk.
Following a recent statement from the Australian Department of the Treasury about strengthening oversight of cryptocurrencies, the head of ASIC, Joseph Longo, noted that one of the key tasks of the regulator is to warn the public about the risks associated with crypto assets. According to him, the popularity of cryptocurrencies among young people has increased dramatically due to attractive advertising and promises of high profits.
According to ASIC research , 44% of investors own digital assets, while 25% invested only in cryptocurrencies. However, in recent months, the capitalization of the digital asset market has decreased by about $2 trillion, and this is very alarming for the regulator.
“My job is not to support cryptocurrencies, but to protect consumers and enforce laws. Investing in crypto assets is a very risky business that does not bring a stable income. This industry will be regulated soon, but people still need to exercise maximum caution, ”Longo said at a meeting of the Australian Economic Development Committee in Melbourne.
Joseph Longo pointed out that investing in bitcoin should not be confused with blockchain technology, which can be used legally and can actually improve certain areas of human activity. But cryptocurrencies are not subject to government control due to their decentralized nature, which attracts attackers. The ASIC chairman added that despite the agency’s attempts to thwart crypto scammers who are using increasingly sophisticated methods, playing cat and mouse with the authorities.
“There will always be swindlers and criminals in society. However, with the advent of the latest technologies, they easily crossed the borders and began to actively operate in the digital space, ”says Longo.
In April, the Australian regulator warned of liability for the promotion of cryptocurrency projects, which the country’s laws classify as financial products. Failure to comply can result in multi-million dollar fines and jail time.
