Popularity of Crypto Investments Makes Case for Regulations, Australian Securities Watchdog Says – Regulation Bitcoin News

High rates of crypto ownership, with purchases often made on advice from Youtube and Facebook, make “a strong case for regulation,” according to the Australian Securities and Investments Commission. With polls showing that nearly half of Australian retail investors keep some form of cryptocurrency, the watchdog supports its position.

Australian Securities Regulator Strives for Cryptocurrency Investor Protection Rules

Pressure on Australia’s new Labor government is mounting, to put an emphasis on consumer protection as it takes over a task from the preceding conservative government to adopt a regulatory policy regarding digital assets like cryptocurrencies. An extensive, years-long investigation into this subject was initiated by the previous cabinet. It has not yet answered the questions as to whether and how.

A November survey of nearly 1,000 Australian investors by the Australian Securities and Investments Commission revealed that 44% admitted they own cryptocurrency. The results indicated that crypto is the “second most popular investment after Australian shares,” Reuters noted in a report. 25% of respondents who own digital coins claimed that they are their only investment.

Statistical data suggesting high rates of cryptocurrency ownership in Australia were dismissed last year by a top central bank official who referred to the numbers as “implausible,” the news agency remarks. But ASIC believes they make “a strong case for regulation.”

Aside from the popularity of cryptocurrency, another argument is that 41% sought out investment information online. At least one-fifth of the respondents named Youtube as their preferred video platform, while at least one-in-10 pointed to Facebook, the most popular social media site. Only 13% obtained their data from a broker, financial advisor or brokerage.

ASIC Chairman Joe Longo expressed the Commission’s concerns about the large number of participants in the survey who reported investing in what he described as “unregulated, volatile crypto-asset products.” The high-ranking official further elaborated:

Because crypto-asset investments have become mainstream, and they are highly promoted and advertised, the protections available to them are not sufficient. It is important to regulate crypto-assets in order to protect investors.

Reuters comments that this survey was carried out in the month bitcoin (BTC), ether(ETH), both of the most popular cryptocurrencies hit new highs. While the Australian stock markets are down around 6%, both coin prices have fallen by approximately two-thirds.

One reason is the increase in interest rates, which have probably convinced many investors to sell speculative investments. This retreat contributed to the recent cryptocurrency market crash, which led to bankruptcy for many companies that had been built around crypto.

Attention has been paid to other government agencies by the growing popularity of crypto among Australian investors. Taxation Office earlier in the year identified crypto-related profit as one of several priority areas for reporting. Taxpayers were reminded by the authority that they must calculate capital gains from tokens or coins sales and report it to their taxes.

In this story, tags
ASIC, Australia. australian. commission. Cryptocurrencies. Cryptocurrencies. Cryptocurrency. Facebook. Investments. Investors. Poll. Protection. Regulation. Regulations. Securities. Social Media. Survey. Watchdog. YouTube

Are you concerned that Australia will adopt strict regulations regarding cryptocurrency investments? Please comment below with your opinions.

Lubomir Tassav

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

Image creditShutterstock. Pixabay. Wiki Commons. Ms. Li

DisclaimerThis article serves informational purposes. This is not an invitation to purchase or sell directly, nor a suggestion or endorsement of products, services or companies. Bitcoin.com doesn’t offer investment, tax or legal advice. The author and the company are not responsible for any loss or damage caused or alleged caused by the content or use of any goods, services, or information mentioned in the article.

Get more Crypto News at CFX Magazine