Australian Authorities Push For Reform In Retail Crypto


  • The Australian Securities Commission is intensifying crypto regulatory measures.
  • More than 60 issuers offer unregulated high-risk derivatives in Australia.
  • The commission promises disciplinary actions against non-complying issuers.

As the cryptocurrency industry continues to gain traction, the increased need for proper and robust regulatory measures becomes increasingly apparent. 

In response to this growing need, the Australian regulatory authority has announced the enforcement of stricter measures in an effort to mitigate risks associated with crypto derivatives for retail investors.

New Regulatory Measures

In a report released on September 5th, the Australian Securities Commission announced its decision to strengthen efforts to regulate high-risk over-the-counter (OTC) derivatives including cryptocurrencies, offered to retail clients within the region.

The Commission known for its history of taking strong regulatory actions to protect consumer interests, expressed concerns regarding the amalgamation of unregulated digital assets and regulated financial products. 

The report revealed the commission’s dissatisfaction with offerings of high-risk crypto products, addressing the harms they pose to retail investors. 

This heightened scrutiny comes on the heels of the conclusion of a targeted review, which revealed that more than 60 Australian financial licensees offer high-risk derivatives within Australia. The report also builds on the commission’s previous efforts to ensure compliance with design and distribution obligations, further highlighting their dedication to safeguarding financial markets. 

The AISC’s deputy chair, Karen Chester, issued a stern warning to issuers, underscoring the importance the adhering to the enforced distribution regulations. She stated that disciplinary actions will be taken against issuers found lacking in compliance.

This regulatory stance showcases the AISC’s commitment to fostering a secure and favorable financial environment, specifically in the fast-growing cryptocurrency landscape.

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Source link: https://dailycoin.com/australian-authorities-push-for-reform-in-retail-crypto/

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