Consumer groups have called for strong financial regulation of cryptocurrency markets and investments in Australia, saying crypto assets are “complex, volatile and high-risk products that can cause harm to Australian consumers.”
In a submission to the federal treasury’s consultation paper on cryptocurrency, consumer group Choice has urged the federal government to “strongly consider regulating all crypto assets under the existing financial product regulatory regime for better outcomes for consumers and the community”.
That includes all cryptocurrencies and other assets such as non-fungible tokens. A Choice survey found 12% of Australians have bought cryptocurrency, and 11% are interested in purchasing it. The survey found a majority of consumers say cryptocurrency trading should have strong protections, similar to trading on the stock market.
The most common reason people gave for investing in cryptocurrency was financial – viewing it as a long term investment. Those who were interested in investing but hadn’t yet done so cited fear of losing moneyand scams as the two biggest reasons for not following through.
Choice said obligations on secondary crypto asset service providers, such as wallets, exchanges and markets, need to be strengthened, and should mirror the Australian Securities and Investment Commission (Asic) obligations on financial services licensees.
Consumer protections against misleading and deceptive conduct and unfair contract terms under the Asic…
