In Australia Securities and Investments Commission (ASIC) is intensifying its scrutiny of the cryptocurrency market, issuing fresh warnings ahead of upcoming government regulations.
ASIC has raised concerns about the risks associated with cryptocurrencies, labeling them as “created out of nothing.” Last year, ASIC Chair Joseph Longo cautioned investors against going all-in on cryptocurrencies due to the challenges in monitoring the industry.
It is a big challenge, especially as many have been excluded from the ‘financial products’ category. Longo also observed that crypto scams in Australia are increasing; thus, they are tricking victims while staying anonymous.
Moreover, Australia will enact its own law for cryptocurrency exchanges and set up a licensing policy before year-end 2024. By 2025, the government will implement this crucial step towards comprehensive crypto regulation.
In 2023, Australia updated its capital gains tax guidelines, requiring investors to report gains and losses on digital assets, including wrapped tokens and interactions with decentralized finance protocols.
Australia’s ASIC Warns on Cryptos Amid Regulatory Overhaul
The Australian Financial Review revealed that ASIC’s revocation of licenses significantly contributed to Binance’s downfall. Regulatory compliance challenges played a pivotal role in Binance’s struggles. Binance Australia’s CEO, Jeff Yew, attempted to collaborate with regulators but clashed with Zhao, leading to his resignation.
While Binance’s derivatives business thrived in Australia, achieving financial stability for the Australian team proved elusive. The ASIC’s decisive actions underscore the increasing importance of regulatory compliance in the cryptocurrency landscape.
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