Australian regulator seeks ‘regulatory perimeter’ targeting blockchain space

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Australia’s main financial regulator intends to support the digital currency industry, although it has highlighted the large number of scams affecting investors in this area.

The Australian Securities and Investments Commission (ASIC) said that while it was difficult to regulate new and emerging technologies such as digital currency, it would continue to work to “maintain, facilitate and improve the performance of [Australia’s] financial system and the companies operating within it ”, as a central element of its function.

ASIC Commissioner Cathie Armor told a panel during Australia Blockchain Week that the regulator remains interested in how digital currency could improve the functioning of the wider financial system.

“When we talk about new innovations like [DLT], or new products like various crypto asset products, from our perspective at ASIC, we’re really interested in how these products can be used to make our financial system work better. “

Armor cited an example of an innovation, a plan that would replace the Australian Securities Exchange’s current clearing system with technology powered by DLT.

“We are spending a lot of time reviewing ASX’s proposal to change their clearing and settlement system.”

While the commissioner said the regulator is keen to support the digital currency industry as much as possible, she said they still receive a large number of complaints about scams and fraud.

“In our job of dealing with consumer and investor issues, we get a lot of complaints when things aren’t going well. We know this is probably of concern to all of you who are involved in the industry as much as it is to us.

In a warning to investors, Armor said there was a need to be aware of “bad practices or scam activity” regarding digital currencies and tokens.

It follows from an earlier discovery by the regulator that digital currency scams increased by 20% in the first few months of the global response to COVID-19, which it said indicated a trend for even more scam activity .

See also: CoinGeek Live Panel, Digital Currency and Global Compliance: Tools and Tips for Exchanges, Wallets, and Other Service Providers

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