The chairman of the Australian Securities and Investments Commission (ASIC) has said his organization views cryptocurrency as a debenture hence it falls under regulatory purview. The ASIC chairman also argued that many cryptocurrency investors are unaware of what they are getting into.
Australian Regulator Says Crypto Is a Debenture That Requires Regulation
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Crypto Falls Under the ASIC Regulatory Oversight
Joe Longo, chairman of the Australian Securities and Investments Commission (ASIC), has stated that contrary to popular belief, cryptocurrency is regulated. Longo explained that while it may not be fully regulated, the fact that his organization views cryptocurrency as a debenture means that ASIC’s jurisdiction extends to crypto assets.
In an interview on Sky News, Longo, who recently cautioned Australians against using their superannuation funds to invest in crypto, explained why ASIC decided to include crypto assets under its regulatory purview. He also disclosed why the regulator is appealing the Australian Federal Court’s recent dismissal of its civil proceedings against Finder Wallet.
As reported by Bitcoin.com News, ASIC is appealing the ruling due to its concerns that the Finder Earn product was offered without the appropriate license. The lack of this license or authorization meant that Finder offered the product, which has since been withdrawn, “without the benefit of important consumer protections.”
Crypto Is a Debenture That Requires Regulation
During the interview, Longo reiterated arguments put forth by ASIC when it announced its intention to appeal the Federal Court ruling.
“We think it’s a debenture and the trial judge took a different view and reasonable minds can differ. But we feel as the regulator that it is a debenture and if it is it’s regulated. They didn’t have a licence and we want to send a strong message to the industry that they need to be very careful about how they promote or package up some crypto or digital asset-related investments and think they’re not regulated because they may very well be,” the ASIC chairman said.
When asked about the increasing number of crypto fraud cases worldwide, Longo expressed concern. He claimed that crypto activity is often associated with money laundering or aiding crime. The ASIC chairman also argued that many cryptocurrency investors are not fully aware of what they are getting into.
However, Longo assured that his organization will continue to monitor the industry and issue public warnings.
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