Crypto investors ‘on their own’

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SYDNEY: Australia’s corporate watchdog is working with lawmakers to develop rules for digital currencies but warns many crypto assets remain unregulated for now, leaving investors in such products “on their own”.

In his first public comments since the country’s largest bank unveiled plans to offer cryptocurrency trading, Australian Securities and Investments Commission chair Joe Longo told investors to be cautious buying products that had no protection.

“Consumers should approach investing in crypto with great caution,” he told an Australian financial review conference.

“At present many crypto-assets are probably not ‘financial products’, For now at least, investors are on their own,” Longo pointed out.

Earlier this month, Commonwealth Bank of Australia broke industry ranks by becoming the first main-street bank in the developed world to offer a platform for retail customers to trade cryptocurrencies.

“Crypto is on our doorstep, here and now, and being driven by extraordinary consumer and investor demand.

“The implications for consumers are potentially huge,” Longo said. — Reuters