ASIC Chair Joe Longo issued a caution to Australians regarding investing their Self-Managed Superannuation Funds (SMSFs) in cryptocurrency, reaffirming the commission’s dedication to scrutinizing crypto products to ensure investor protection and regulatory compliance.
Several Australian cryptocurrency entities, including DCA Capital, Digital Commodity Assets Pty Ltd, and the Digital Commodity Assets Fund, are facing liquidation and federal court proceedings amidst concerns from investors regarding mismanagement, lack of proper licenses, and potential breaches of managed investment scheme regulations.
KordaMentha, appointed as liquidators, has uncovered debts totaling 100 million AUD ($65 million) owed to 100 investors. The federal court has frozen the assets of DCA Capital’s director, Ashod Balanian, amounting to 55 million AUD ($36 million), with instructions for him to surrender his passport.
Regulators in Australia have intensified their scrutiny of the country’s crypto regulatory landscape in recent months. ASIC Commissioner Alan Kirkland emphasized the importance of addressing the “regulatory trilemma” for financial innovation, which includes ensuring consumer protection, market integrity, and fostering financial innovation.
Australia has been identified as a country on the cusp of a significant increase in crypto demand. While institutional crypto demand locally remains relatively low, the adoption of stablecoins and favorable policy developments could catalyze a surge in activity in the crypto space.
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