Read Time:1 Minute, 57 Second
The Australian Securities and Investments Commission (ASIC) is seeking to restrict its attention to protecting investors from digital assets and cyber crimes. The market regulator has released a portion of its “Corporate Plan” for 2022-2026, which includes digital assets rules as one of its major strategic initiatives for 2022-2023.
The ASIC Chair Joseph Longo published a document that states the regulator’s acknowledgement of the changing regulatory climate with innovations. Innovations in digital assets, for example, have introduced new dangers to investors.
The ASIC is committed to taking action to protect investors from the risks associated with digital assets. But, it plans to do this without preventing innovation.
“ASIC will take action to protect investors from risks posed by crypto-assets that fall within our jurisdiction. We are dedicated to using all of our resources to maintain the integrity of the Australian financial markets,” according to a press release.
It also plans to implement the following measures:
- Collaborating with the Department of the Treasury to establish a practical regulatory framework that protects consumers.
- Taking enforcement actions to safeguard consumers.
- Monitoring Product Disclosure Statements for compliance.
The ASIC noted that it would implement a regulatory model for digital assets exchange-traded products (ETPs), increase public awareness of risks involved in the digital asset market, and cooperate with global peers to develop an international policy framework surrounding digital assets and DeFi.
The study was issued when Australia was experiencing a boom in digital asset fraud claims. Australians lost more than $242 million to investment scams in the first half of 2022 alone, with 4,730 crypto scams making up most of those reports.
Longo stated in a recent statement that the ASIC intends to do more consumer education outreach as it learns that most digital assets investors were unaware of the market’s dangers.
Meanwhile, the Australian Prudential Regulation Authority (APRA) also released a similar permanent digital assets regulations roadmap, which it plans to finish by 2025. The APRA road map focuses on establishing the ground rules for banks and other financial companies to manage their digital asset exposure risks.
ASIC’s and APRA’s plans to establish digital asset regulations sign that the Australian government is taking cryptocurrency seriously. The government’s focus on investor protection and fraud prevention are commendable, and these agencies’ efforts will go a long way in safeguarding consumers.
Happy
0 %
Sad
0 %
Excited
100 %
Sleepy
0 %
Angry
0 %
Surprise
0 %
0
0
