ASIC calls for proactive co-operation from crypto companies

The Australian Securities and Investments Commission (ASIC) has called on Australian cryptocurrency companies to take a more proactive approach to their relationship with regulators.

Australia is looking to better regulate its crypto industry, and part of that is communicating to companies interested in the sector that they will face greater scrutiny moving forward.

Speaking at Blockchain Australia, ASIC commissioner Cathie Armour said that digital companies would need to adapt the way that they interact with the regulator. “Many years ago, the first port of call for a firm developing a crypto asset-based financial product with ASIC was through our innovation hub”, she told attendees.

ASIC wants to see established companies seek out guidance and engage actively rather than await regulatory action. More guidance is needed when it comes to investment practices in the sector too, Armour noted.

She also said that more than 800,000 Australians have made a digital transaction over the past 12 months pointing to the growing significance of the sector for ordinary citizens.

She cautioned that many have become the victims of scams due to lack of clarity and experience, including sophisticated investors.

Australia is at a crossroads with the country’s first stablecoin currency making a debut. The ANZ minted $30m of the Ethereum-based A$DC stablecoin based on the AUD.

This is the second prominent token after the USDT that will now be available to people who seek to benefit from the speed of crypto while still feeling confident that the value of the token is pegged to something tangible.

Whatever the changes in future for large scale business products in crypto, Armour added, they would need to be coordinated with regulators. In the meantime, you can use crypto recreationally in Australia.

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Updated: 03/24/2022 — 16:00