By Alicia Maher
Chairman of the Australian Securities and Investments Commission (ASIC), Joe Longo, spoke at the Australian Financial Review Super and Wealth Submit two days ago at the Fullerton Hotel In Sydney. He stated that the growth of blockchain technology digital assets has been remarkable. He said relevant authorities could no longer overlook the asset class.
Joe Longo revealed that as a regulator, he was puzzled by decentralized autonomous organizations (DAOs). He admitted that these organizations posed unique challenges to regulatory bodies like the ASIC. Mr. Longo said with a DAO, it is difficult to know who should be held accountable if things go wrong or even how it can be held responsible in court.
The ASIC chair speaking said that there is great demand for these digital assets in Australia. He noted that there are lots of decisions yet to be made by ASIC as regards cryptocurrency regulation policies. Mr. Longo, however, notes that this is a challenge the body will have to rise to as the time is now and the wave is motivated by large consumers and investors’ interest.
Joe Longo’s Warning
The ASIC frontman, having noted the excitement and demand around the cryptocurrency market, gave some words of caution to the audience at the summit. He urged people to think twice before putting their money into a market without regulations that most people are yet to understand. Longo believes that consumers and investors ought to weigh up the risk before getting in.
Joe Longo believes that ASIC is not to prevent people from investing in cryptocurrencies. He, however, believes that people should understand the possible risks. He pegged the rise in interest in these digital assets to low-interest rates provided by financial bodies, with the pandemic giving it more exposure.
He went on to say that consumers and investors may have little comfort in the law if things go wrong. He said this after reminding the audience of the absence of regulations to protect users. He believes investors and consumers may be exposing themselves to a lot of risks. Longo stated that there was still a lot about cryptocurrencies yet to be understood.
Australia’s Outlook On Crypto
The discussions surrounding cryptocurrency regulations in Australia have heated up in recent times. A Senate inquiry had recently called for regulation of the new digital asset class in the past weeks. Now there is also news that the Commonwealth Bank will allow its users to trade these digital assets.
The chief of the Commonwealth Bank disclosed that he was worried that if they did not start adopting the technology, they could miss out. For the leader, he believes the risk of missing out at the moment outweighed the potential risk of participating in the market. Joe Longo himself felt the step by the apex bank is crucial as it adapts to the market’s changing needs.
Australia’s Senate a couple of days ago spoke positively of the new industry. They were pleased by the willingness of the market to comply with regulations. What these regulations will be is yet to be seen, but it doesn’t seem like the country will be stopping its citizens from engaging in the market.