Australian crypto ownership warrants consumer protection, says regulator

SYDNEY – Almost half of Australian retail traders owned cryptocurrency in late 2021 and extra bought their info from YouTube movies than from monetary advisers, the securities watchdog stated on Thursday, calling the information a “sturdy case for regulation”.

The Australian Securities and Investments Fee (ASIC) survey of 1,053 retail traders, carried out final November, discovered 44% reported holding cryptocurrency, making it the second hottest funding after Australian shares.

1 / 4 of the traders surveyed who held cryptocurrency stated it was their solely funding.

The information will add to stress on Australia’s new Labor authorities to stress shopper safety because it takes over a years-long research, began beneath the earlier conservative authorities, on whether or not and easy methods to regulate the digital belongings.

It additionally legitimises broadly circulated statistics about excessive charges of Australian cryptocurrency possession which final 12 months have been dismissed as “implausible” by a high central financial institution official.

The survey additionally confirmed 41% of respondents went to a social media outlet for funding info, with 20% naming Alphabet Inc’s Youtube and 11% naming Meta Platforms’ Fb.

Simply 13% gained their info from a monetary adviser or dealer, in keeping with the survey.

“We're involved in regards to the variety of individuals surveyed who reported investing in unregulated, risky crypto-asset merchandise,” ASIC Chair Joe Longo stated in a press release.

“There are restricted protections for crypto-asset investments given they've turn into more and more mainstream and are closely marketed and promoted. There's a sturdy case for regulation of crypto-assets to higher defend traders.”

Because the survey, rate of interest hikes have spurred traders to exit speculative belongings, sending cryptocurrencies’ costs tumbling and sending some crypto-related companies out of business.

The survey was carried out in the identical month bitcoin and ether, the 2 hottest cryptocurrencies, hit file highs. Each have slid about two-thirds since then, whereas the Australian inventory market is down about 6%.

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