ASIC Chairman “Very Concerned” As Crypto Becomes Australia Second Best Investment Choice

ASIC Chairman “Very Concerned” About Australia’s Crypto Investment Choices.

The chairman of the Australian Securities and Investment Commission (ASIC), Joseph Longo, has recently voiced concern about the growing number of crypto investors in the country. 

According to a survey conducted by ASIC in November 2021 to determine the attitudes of retail investors during the COVID-19 pandemic, nearly half of the 1,053 people investigated are holding cryptocurrencies. 

The research revealed that 44% of the total investors surveyed are involved with virtual assets, making it the second largest investment of choice for investors after the Australian Shares. 

In addition, a recent study revealed that a quarter of the Australian investors who own cryptocurrencies noted that it’s their only investment. 

Based on the poll, just 20% of crypto owners considered themselves “risk takers,” raising the question of whether the investors are aware of the volatile nature of cryptocurrencies coupled with the risks associated with crypto investments. 

The ASIC report noted that some of these investors surveyed (41%) got their information regarding the asset class on social media platforms like YouTube and Facebook, and only 13%  consulted financial experts. 

Looking at the number of crypto investors in the country, the financial regulators are concerned about the inherent nature of cryptocurrencies because digital assets are not fully regulated in the region. 

The financial watchdogs are yet to establish a comprehensive regulatory framework to guide the use of cryptocurrencies in Australia.

“We are concerned about the number of people surveyed who reported investing in unregulated, volatile crypto-asset products,” said Longo. 

The ASIC chair noted that the surveyed data calls for stronger digital asset regulation to protect investors and consumer interests from the risks involved with virtual currencies.