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Why Australian Regulators are Sounding Alarm against Un-Registered Crypto-Firms?

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Aug 21, 2021

By now, almost everyone throughout the globe is well aware of cryptocurrencies. People now know about them one way or another, be it in the form of Bitcoin or Ether. However, the cryptocurrency industry has finally found its place in the global economy train.

In just a matter of 12 years, the cryptocurrency industry has morphed into an entire galaxy within the universe of the internet. However, it is like a galaxy that is anonymous and likes to stay that way. Therefore, the regulatory authorities from every country are wary of it and want their citizens to stay away from it.

While the public is constantly moving towards the cryptocurrency space to make investments and benefit from it, the regulators want the exact opposite. It can be said that at present, the regulators know that it is futile if they keep asking their citizens to stay away from cryptocurrencies.

They know that people would continue heading in the direction where they have their own benefit and are making money from. This is the reason why the regulatory authorities have changed their strategy and are going after the cryptocurrency entities that are unregistered and illegal.

In the beginning, the regulators criticized the entirety of the cryptocurrency industry for being mainly decentralized in nature. However, as the industry has continued growing larger with time and has included over 200 million users, things are no longer the same for regulators to handle.

The regulators have understood that the cryptocurrency industry is providing people with exactly what they wanted. The crypto-verse is offering people full authority over their personal/financial information, something that the traditional financial institutions lacked.

Now, they want the public to be vigilant towards the choices they make in terms of cryptocurrency investments and the platforms they choose for that purpose.

One of the latest regulatory authorities that have taken this liberty is the Australian Securities and Investments Commission (ASIC) to intimate its citizens about illegal/unregistered cryptocurrency firms.

The reports suggest that the ASIC has recently issued a warning for the locals to stay very vigilant and away from cryptocurrency firms that are operating in the country without being registered.

The regulator has revealed that for any crypto-firm to operate in Australia, it needs to get approval from the ASIC. If the firm does not have that kind of approval, then it is trouble for the investors. The firm must have a license from the ASIC and it must also adhere to the regulatory policies such as anti-money laundering (AML).

The regulator has revealed that it had to issue a warning to address the matter because of the complaints raised by the locals around such entities. The ASIC confirmed that they have received several complaints around such platforms that have lured locals and deprived them of their funds with fake offers and false promises.

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