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ASIC Issues Warning, Alleges ‘Crypto Created Out of Nothing’
- ASIC Chair Joseph Longo cautions investors about the risks of cryptocurrencies, emphasising their distinct difference from traditional investments.
- ASIC is intensifying its legal actions in the crypto sector, focusing on transparency issues, especially with Binance, and preparing to enforce upcoming crypto regulations.
ASIC Cautions About ‘Whole Crypto Story’
The Australian Securities and Investments Commission (ASIC) is intensifying its scrutiny of the crypto sector, with Chair Joseph Longo issuing warnings about the risks of digital tokens and criticising major crypto exchanges like Binance.
It’s basically created out of nothing, out of the ether – it’s basically computer code. The whole crypto story to my mind remains one that we should be very, very, very cautious about.
Joseph Longo ASIC plans to strengthen crypto laws by 2025 to address these risks. Longo advises investors to be cautious, noting the opaque nature of crypto transactions and emphasising that cryptocurrencies differ significantly from traditional investments, such as real estate and superannuation.
My key message remains: be careful before you put your money into crypto.
Joseph Longo Increased Vigilance Amid Binance Downfall
ASIC said it is actively pursuing legal cases in the crypto space, highlighting its increased vigilance. Additionally, concerns were raised about the transparency of Binance’s operations.
The other reason I worry about crypto is that you can trade crypto anywhere in the world. I mean, look at Binance – where are they based? We still don’t know. So, what am I dealing with?
Joseph Longo Deputy Chair Sarah Court noted that ASIC’s regulatory approach includes both the design and enforcement of crypto laws, with a readiness to address misconduct.
Crypto has been a really critical part of the enforcement that we’ve been doing this year. If we see misconduct though that raises significant issues in the same way as these other cases then absolutely, we will continue to prioritise and take enforcement action.
Sarah Court This heightened focus comes as more Australians show interest in cryptocurrencies, with upcoming legislation and increased funding for ASIC to manage crypto market complexities. The Albanese government has announced plans for a regulatory framework that would treat crypto exchanges similarly to stockbrokers and other financial institutions.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
