Despite the rising number of crypto-related scams, the Australian ASIC has decided to back the local digital assets market, noting the difficulties of regulating new innovative technology.
While speaking at a Blockchain conference, Cathie Armour, the head of the Securities and Investments Commission, stated that the role of the federal regulator is to maintain, improve, and facilitate the business environment and economic activity in Australia. She said,
When we’re talking about innovations like [DLT], or new products like various crypto asset products, from our perspective at ASIC, we are interested in how those products can be utilized to improve how our financial system operates.
Not only that, the head of the Australian regulator identified one such innovation, revealing that his agency aims to replace its traditional clearance procedure with a distributed-ledger-based system. Armour further added,
We are spending a lot of time looking at the ASX’s proposal to change its clearing and settlements system.
Rising number of scams in the Australian crypto market
Even though the regulator wants to assist the domestic cryptocurrency industry, the federal agency sees a significant surge in crypto-related scams and financial crimes. She described the irregularities as a threat to both investors and the government and urged the users to report any fraudulent activity. Armour said that her agency would take steps to eliminate the corrupt practices in the Australian digital asset market.
Earlier in March, the ASIC warned that dating websites and apps were the latest scams target and urged the investors to not involve in third-party digital assets scams.
Last year amidst the early outbreak COVID-19 pandemic, the federal agency warned that the fraudulent activities and scams in the crypto market had increased a whopping 20 percent.