In a press statement on Thursday, Joe Longo, the head of the Australian Securities and Investments Commission (ASIC), made the remarks regarding research that was done in November 2021, into investing behaviour after the COVID-19 pandemic began.
Australia’s financial sector is governed by the Australian Securities and Investments Commission (ASIC), which also has regulatory authority over cryptocurrency investments there. The words from the ASIC chair come at a time when cryptocurrency trading is still not completely regulated in Australia, which caused some industry groups to clash with ASIC representatives earlier this year.
1,053 Australian people who were at least 18 years old and engaged in trading in securities, derivatives, or cryptocurrencies between March 2020 and November 2021 provided the data for the ASIC study. According to the study, 44% of individuals asked said they owned cryptocurrency, making it the second most popular financial option. 25 percent of those investors said they were just investing in cryptocurrencies.
Concern has been expressed by the chief about the huge number of people who made investments in “unregulated, volatile” crypto assets during the outbreak.
“We are concerned about the number of people surveyed who reported investing in unregulated, volatile crypto-asset products.”
Only 20% of cryptocurrency owners, based on the poll, considered themselves to be “risk-takers,” which raises questions about whether or not investors are aware of the risks associated with this asset class.
The dearth of knowledge among ordinary investors, he continued, “makes a strong case for regulating crypto-assets to better protect investors,” given the “limited protections” that exist for investors. Senator Andrew Bragg of the opposition party agreed with Longo that parliament must move quickly to protect investors and that additional regulation is necessary.