The Australian Securities and Investment Commission, or ASIC, has expressed a desire to support the crypto industry, citing concerns over the regulation of innovative technologies.
Speaking to a panel during the Australian Blockchain Week on Thursday, ASIC Commissioner Katie Armor described the regulator’s goals as working to “maintain, facilitate and improve the efficiency of the [Australian] financial system and the companies operating in it” and ensure that “it is trusted all investors and consumers.” To participate in the system. ”
“When we talk about new innovations like [DLT] or new products like many cryptoasset products, from our ASIC point of view, we really care about how we can use these products to improve our financial system.” …
Armor highlighted one of these innovations and pointed to the Australian Stock Exchange’s plan to replace the electronic clearinghouse register subsystem with a distributed ledger system.
“We spend a lot of time studying the ASX proposal to change the clearing and settlement system,” she said.
Despite the regulator’s desire to work with the cryptocurrency industry, Armor highlighted the large number of cryptocurrency fraud complaints that ASIC received.
“As part of our work on consumer and investor issues, we receive many complaints when things go wrong,” she said, adding:
“We know this may be as worrying for everyone in the industry as it is for us.”
Armor urged industry participants to notify regulators of “bad practices or fraudulent practices”, noting that ASIC “is willing to take action to curb bad practices in this sector.”
In March this year, ASIC issued a warning that dating sites and apps are increasingly becoming a source of cryptocurrency fraud: “Beware of profiles that offer or force you to participate in ‘third-party’ cryptocurrency investments. Most investment opportunities are manifested in assets. Cryptocurrency reported in ASIC is a direct fraud without real investment
In June last year, ASIC warned of the growing prevalence of cryptoasset fraud in the midst of the coronavirus pandemic, and estimates that total fraud activity increased by 20% between March 2020 and May 2020.