Australia’s Financial Watchdog joins the government in looking at fresh crypto regulations

Australian Securities and Investments Commission (ASIC) chairman Joseph Longo has made his thoughts on crypto investing clear: It’s “not my job to be a crypto cheerleader.”

Under a Committee on Economic Development in Australia lunch On Tuesday, Longo said crypto is a “financial innovation full of promise, celebrity and volatility,” noting the differences between the benefits of blockchain and the volatility of crypto and how the two should not be confused.

ASIC is Australia’s equivalent of the US SEC, which regulates the country’s financial sector and protects consumers. And with such a rapidly growing population of crypto investors down under, the regulator is bringing renewed scrutiny to the industry.

In accordance an ASIC report published As of August 11, 44% of the 1,053 Australians surveyed owned crypto, while 25% said crypto was the only investment they owned.

“With so many new investors active in the financial markets, the research builds on our understanding of retail investors and helps us assess where our regulatory efforts are warranted,” Longo said in the report.

While crypto regulation has been due for an overhaul in Australia, Longo spoke about the importance of getting new rules right to prevent fraud and protect new and existing investors.

On Monday, the Australian government also announced its interest in regulating cryptocurrency, starting with the categorization of cryptocurrencies called a “token map”. The map will chart “the number, type and underlying code of available cryptocurrencies,” according to Sydney Herald Times.

Australian Treasurer Jim Chalmers said: “As it stands, the crypto sector is largely unregulated and we need to do some work to find the balance so we can embrace new and innovative technologies while protecting consumers.”

Australia’s approach to Crypto

Australia’s crypto overhaul looks set to improve the industry’s regulatory framework, which was once unclear and discouraged banks from working with crypto firms.

The previous government also sought changes in crypto regulations, starting with former treasurer Josh Frydenberg. He aimed to improve the licensing of crypto businesses and “provide greater safety and security to those people who trade in that area.”

This was just the start of bringing crypto “out of the shadows,” Frydenberg said.

The recent token chart categorization under Prime Minister Anthony Albanese will give crypto investors the opportunity to evaluate market trends and the nuances that can affect a token at any given time as well.

“The Albanians [Prime Minister Anthony Albanese] The government is taking a more serious approach to finding out what’s in the ecosystem and what risks need to be looked at first, Chalmers said.