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- Australian securities regulators look forward to adopt better practices for crypto trade and exchanges
- Crypto assets are termed as risky assets that can affect the existing Australian financial services
- Digital currency-banked assets must not be threatened by crypto assets
Regulation of crypto is the next wanted topic on the list of crypto adoption steps that are to be taken by any country. Governments across the globe are trying to find a balance between satisfying the crypto participants and stabilizing the nation’s environment. On the 29th of June, Australia’s securities regulator announced that they would take opinions from the crypto market operators on further regulations to be applied in the market to come up with the best crypto assets and secure trading practices that help in securing and excelling Australia’s financial services in the future. This was said by the regulators to show support in favour of cryptocurrency for the Australian investors.
Australian securities regulator looks to neutralize crypto trade volatility
Before exposing any type of crypto asset to digital currency-backed assets, the Australian government and regulators are trying to regulate the digital asset industry so as to look after the growing interest of investors towards cryptocurrency. The volatile and unstable nature of cryptocurrencies has increased the financial and economical concerns of countries looking to adopt it legally. Taking Bitcoin for example, Bitcoin prices soared to an all time high in the month of April, after which it receded drastically and has been receding ever since. Any asset or stock has prices that are never constant but the variance of the rise and fall in prices is what makes a security stable.
After such variability in major cryptocurrencies that are prevalent in the market, the Australian Securities and Investments Commission (ASIC) wants to ensure the safety and prevent any risk and harm for its consumers and markets. Along with the customers, the exchange-traded products (ETPs) and various other financial instruments will be exposed to crypto-backed assets that will not be developed properly.
Regulators want to protect conventional assets and investments
The Australian regulators and authorities are looking forward to having a good relationship with cryptocurrency and hence wants to frame a secure regulation and framework that does not affect the ongoing economic growth negatively and also ensures a fair practice method of crypto trade. Crypto assets have been under the financial instrument consideration under the Australian corporations law and hence, ASIC supervision comes into the picture. The regulators will supposedly publish a feedback report after the consultation from the market participants and will publish a fool proof informed report that leads to increased and transparent knowledge about the regulators’ plans in adopting cryptocurrency in the economy and how the practices will be made secure.
Any economy that is threatened by the entry of cryptocurrency in the country will face scrutiny from the investors that want more opportunities as the profits involved with crypto are comparatively more than conventional investments.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
