Australian Financial Minister Warns Users On Crypto Investing Risks, But Govt Won’t Stand In the Way
The Australian Minister for Financial services and the digital economy, Senator Jane Hume, has sounded a warning to crypto investors telling them to be aware of the risks associated with the assets.
Hume said this while speaking at the Stockbrokers and Financial Advisers Association Conference in Sydney on Thursday.
Australia Is Not Against Crypto
The minister was also quick to point out the risks associated with cryptocurrencies while also revealing that the government won’t stand in the way of crypto investors but would rather give them the chance to make their own decisions.
Hume also hinted at the possible regulation of cryptocurrencies in the country when she said that digital currency transactions are also subject to Australian law.
Recent reports suggest that a parliamentary inquiry committee headed by Liberal senator Andrew Bragg is set to investigate likely ways to regulate cryptocurrencies.
The committee will look at the present policy and legal backdrop surrounding cryptocurrencies in Australia while also considering approaches taken by Canada, Singapore, the United Kingdom, and the European Union.
According to Bragg, the committee aims to identify the type of policy provision and legal certainty needed to scale up private investment into digital assets in Australia.
Bragg said the ultimate goal would be to develop a comprehensive regulatory framework for digital assets. Bragg also said that he would appreciate the formation of a licensing regime to protect the interests of consumers.
Bitcoin Freefall Prompts New Warnings From Governments
This new move taken by the Australian government could be traced to the recent crypto market crash. The current activities in the crypto market have seen governments reiterate their positions on cryptos; advising their citizenry to tread carefully.
Bitcoin saw a massive drop from its previous all-time high of $65,000 to below $40,000 this week. This drop had been attributed to Elon musk’s announcement that Tesla would suspend Bitcoin payments for Tesla cars.
The dip in prices also saw Chinese regulators warn local investors against trading cryptocurrencies. The Asian country also banned banks and payment firms from offering clients crypto-related services.