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The Chairman of the Australian Securities and Investments Commission called cryptocurrencies excessively volatile assets with a high level of risk.
After the recent statement of the Australian Ministry of Finance about strengthening the supervision of cryptocurrencies, the head of ASIC Joseph Longo (Joseph Longo) noted that one of the key tasks of the regulator is to warn the public about the risks associated with crypto assets. According to him, the popularity of cryptocurrencies among young people has increased dramatically due to attractive advertising and promises of high profits.
According to an ASIC study, 44% of investors own digital assets, and 25% invested money only in cryptocurrencies. However, in recent months, the capitalization of the digital asset market has decreased by about $ 2 trillion, and this greatly alarms the regulator.
“My job is not to support cryptocurrencies, but to protect consumers and enforce laws. Investing in crypto assets is a very risky occupation that does not bring a stable income. Soon this industry will be regulated, but people should still exercise maximum caution, “Longo said at a meeting of the Australian Economic Development Committee in Melbourne.
Joseph Longo noted that investing in bitcoin should not be confused with blockchain technology, which can be used legally, and which is really able to improve certain areas of human activity. But cryptocurrencies are not subject to state control due to their decentralized nature, which attracts intruders. The ASIC chairman added that despite the agency’s attempts to prevent crypto fraudsters, who are using increasingly sophisticated methods, playing cat and mouse with the authorities.
“There will always be scammers and criminals in society. However, with the advent of the latest technologies, they easily stepped over the boundaries and began to actively act in the digital space, “says Longo.
In April, the Australian regulator warned of responsibility for the promotion of cryptocurrency projects, which the country’s laws refer to as financial products. Failure to comply with the requirements can lead to multimillion-dollar fines and imprisonment.
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