Australian consumer protection Authority issues warning to crypto investors

Australian consumer protection Authority issues warning to crypto investors 2

The Securities and Investments Commission  issued a public warning for those users who are involved in crypto Investment.

In the present time, a discussion is at tremendous level where the Australian senate are planning to bring a crypto framework legalization rule to regulate the whole crypto market. Even the Australian law players are also seeing themselves as a leader to lead the whole world in the crypto regulation.

Read also: Australia plans Global Leadership in Digital Assets

But amid this situation in Australia, The Securities and Investments Commission authority warned all the Australian citizens against their Investment in crypto. Basically they warned people to remain away from unlicensed crypto companies to avoid any kind of Investment loss. 

“to be wary of investing in crypto-asset financial products … through unlicensed entities.”

This warning, from the Australian consumer protection Authority, seems strange because already a big discussion is going on about crypto regulation but still they are keeping to publish such kinds of statements. 

Most of the experts say that this warning of commission is only to protect the Australians against the unlicensed crypto services.

ASIC also shared their own point of view on this statement. According to ASIC, the government wants to impose a rule to make crypto licenses mandatory for those crypto companies which are offering crypto products like any cryptocurrency or token to be a financial product.

And also ASIC added that, Body is getting huge complaints from the Australians toward their loss from the unlicensed platforms, so this statement by the government authority was necessary to protect their citizens.

While few experts claimed that this statement was published by the commission because crypto related scams are surging rapidly. But a report claims that only 0.34% illegal activities involved in the use of crypto. 

Read also: DeFi is the ‘American dream’ for all : Former Google scientist