Based on the reports from Aussie investors, ASIC said that citizens have suffered significant losses due to “excessive leverage, platform outages, or unfair liquidations.”
As crypto breaches mainstream finance, authorities have started issuing warnings to citizens against unregistered crypto businesses.
Joining this list today is the Australian Securities and Investments Commission (ASIC) as it warned Aussie investors to be wary of unlicensed entities that offer financial products.
In a statement released by the ASIC, the regulator advised Australian citizens to make crypto-asset related investments via financial institutions that hold an Australian Financial Services license or an Anti-Money Laundering mechanism.
ASIC said it had received reports from investors across Australia of citizens experiencing significant losses after trading crypto financial products such as options, futures, leveraged tokens and binary options. However, the losses were attributed to “excessive leverage, platform outages, or unfair liquidations.”
The announcement further highlighted that unlicensed crypto platforms across the border have also invested in features such as geo-blocking.
Blockchain Australia, a local firm advocating for the crypto and blockchain industries, believes that crypto’s “wild west” narrative is currently stifling Australian crypto innovation. On July 26, the Australian association urged the Senate Select Committee to release a regulatory framework for crypto businesses and provide a safe harbor for such businesses until a legislation is established.