The Australian Securities and Investment Commission (ASIC) wants to concentrate more on safeguarding customers from cryptoassets and online criminal activity. A portion of the market regulator’s “Corporate Plan” for 2022–2026 has been made public, highlighting the regulation of digital assets as one of its main strategic initiatives for 2022–2023.
ASIC introduces new regulations to protect investors against crypto risks
According to a paper released by ASIC Chairman Joseph Longo, the regulator acknowledged that the arrival of innovations had changed the regulatory landscape. Digital assets are one of these advances, and it has brought new risks for investors.
The ASIC declares its dedication to taking steps to safeguard investors from these risks, particularly those presented by cryptoassets. It plans to accomplish this without stifling innovation, though.
ASIC will take steps to safeguard investors from risks presented by digital assets that come under our purview. The ASIC is devoted to using all of its authority to protect the credibility of the Australian financial markets.
It plans to take on a number of activities, such as encouraging the creation of a strong regulatory framework centered on consumer rights in cooperation with the Treasury Department, enforcing consumer protection laws, and monitoring Product Disclosure Statements.
The ASIC further stated that it intended to enforce a regulatory framework for exchange-traded products (ETPs) that deal with cryptoassets, educate the public about the risks associated with the market for virtual currencies, and collaborate with local and global peers to create international legislation on cryptoassets and DeFi.
Frauds involving digital assets rocked Australia
The research is released at a period when fraudulent cases involving digital assets are on the rise in Australia. According to the ASIC, there have been more than 4,730 documented cryptocurrency investment scams, and Australians have lost close $242 million to these schemes in 1H 2022.
According to a recent statement by Longo, the ASIC intends to increase public awareness because it has discovered that a number of investors in the cryptoassets sector were unaware of the market’s risks.