In a similar fashion to the United States Securities And Exchange Commission (SEC), the Aussie equivalent – Australian Securities and Investments Commission (ASIC) – has expanded their operation to further surveil the transactions of popular cryptocurrencies like Solana and Ethereum.
ASIC’s move could force larger cryptocurrencies to delist or comply with even tighter regulations.
The WinePress has previously reported that megabanks in the country have already stated that they are onboard for a new national digital ID by next year. Perhaps this expected tightening partly coincides with this latest move?
Cryptocurrency news outlet Decrypt provided more details:
Australian Securities and Investments Commission (ASIC) increased the size of its crypto team, The Guardian reports, after the popular blockchain shifted from a proof-of-work (PoW) to a proof-of-stake (PoS) system.
The change has prompted U.S. Security and Exchange Commission Chairman Gary Gensler to state that PoS-based tokens could be classified as securities.
Ethereum is under renewed scrutiny following last week’s merge event, as the ASIC looks set to decide on whether the market’s second-largest cryptocurrency is subject to its oversight.
Should ASIC decide to bring PoS tokens like Ethereum, Cardano, and Solana under its remit, crypto exchanges could be forced to either delist them or start complying with more stringent regulatory requirements.
This would include applying for financial services licenses and showing that these platforms also hold significant liquidity in reserve.
Such a move might force some crypto firms to adjust their operating models, as even Tether, the market’s largest stablecoin, has been mired in controversy over its alleged failure to hold enough dollar reserves to back its stablecoin.
While the regulator hasn’t yet issued a final decision, its executive director for markets, Greg Yanco, told The Guardian that ASIC will not be a “cheerleader for crypto assets.”
Research carried out by SEC Newgate for ASIC last November showed that 44% of retail investors in Australia reported holding crypto, and only 20% of them viewed crypto as high-risk.
In response, ASIC chair Joe Longo said the regulator was “concerned that there are limited protections for crypto-asset investments given they have become increasingly mainstream and are heavily advertised and promoted. There is a strong case for regulation of crypto-assets to better protect investors.”
Yanco further said that crypto had not been a big priority for the regulator until last year.
But as the crypto downturn took hold and wiped out investors’ money around the globe early this year, ASIC expanded its team, making crypto one of its “core strategic projects.”
AUTHOR COMMENTARY
[4] Labour not to be rich: cease from thine own wisdom. [5] Wilt thou set thine eyes upon that which is not? for riches certainly make themselves wings; they fly away as an eagle toward heaven.Proverbs 23:4-5
I have repeatedly said that I do not believe these deregulated cryptos are a safe asset to be in, and a wise investment overall. Not only are the markets very volatile, most of these cryptos and NFT schemes are classic Ponzi-pyramid and pump & dump trickeration. And in this case, Proverbs 23:4-5 is a perfect verse describing this market: these currencies are not even physical in most cases!
As I noted in my previous article on the SEC’s moves to regulate crypto, I simply find it hard to believe that central banks would even allow competition their digital currencies (CBDC). Therefore, I personally believe eventual heavy regulation will cause them to lose most of their value, thereby making them totally worthless – unless, as I have hinted to before, these cryptos and NFTs could be directly ported to the metaverse as a ploy to coerce many people to not completely lose their fictious assets.
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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