Australian Regulator Issues Warning About Unlicensed Crypto Businesses

Sep 3, 2021 Crypto

Crypto is extremely famous these days. Every other person we see in a crowd has started investing in crypto.  Now that crypto has slowly started to take over the usual finance systems or the mainstream finances, the authorities have started taking precautions. These precautions are being taken to avoid any issues caused by unregistered crypto companies and warning the common people about these breaches.

When we say authorities it can either be the government or a large body monitoring the monetary challenges of the country. One example of this is the Australian Securities and Investments Commission (ASIC) which has recently been added to the list of authorities. This happened when the ASIC started issuing warnings and cautions to Australian traders to beware of unregistered or unlicensed companies who claim to deal with various kinds of cryptocurrencies.

The ASIC and Signalscv had once released a statement, in which the regulator had made a suggestion for the Australian residents to make any cryptocurrency-related investments secondary to the usual monetary system so that a balance can be maintained and an Australian Financial Services license or a mechanism for anti-money laundering can be established.

The Australian authority ASIC stated that it had received stories from all over Australia about the residents and traders going through hard times because they are experiencing major loss after buying and selling crypto merchandise and currencies which have leverage on the future, choices and binary choices too.

This announcement highlighted the fact that crypto platforms that are unlicensed and unregistered have also invested in many other options which are equal to express warnings that help in assisting the citizens. The ASIC organized and supported this change by stating that ” Licensed entities are subject to the framework that aims to maintain the integrity, quality and reputation of the Australian finance system.”

 An agency in Australia that deals and advocates with crypto-related trades, Blockchain Australia is based on crypto’s “wild west” story which is currently ruling the crypto innovation in Australia. On July 26 last year, the Australian authority urged the Senate Select Committee to launch a regulatory framework for crypto businesses and supply a secure harbour for such businesses till a law is established.

Just a day in the past, Spain’s National Securities Market Commission issued an identical warning towards 12 unregistered crypto businesses working inside its jurisdiction. The listing included crypto exchanges By bit and Huobi, which aren’t approved to supply funding companies within the nation.