Authorities have begun providing warnings to individuals about unregistered crypto firms as crypto enters mainstream finance.
The Australian Securities and Investments Commission (ASIC) has added its name to this list. Therefore, warning Australian investors to avoid unregistered companies that sell financial products.
According to a statement, the ASIC encouraged Australian residents to invest in crypto-assets through licensed financial institutions.
According to ASIC, investors throughout Australia have reported significant losses after trading crypto financial products. According to the report, the losses are linked to “high leverage, platform failures, or unjust liquidations”.
Unlicensed firms can register with an external dispute resolution mechanism, such as the Australian Financial Complaints Authority. Therefore, they will then allow Australian investors to lodge complaints, according to ASIC.
Wild West Narrative
Crypto’s “wild west” narrative, a local advocacy group for the crypto and blockchain sectors, suffocates Australian crypto innovation. The Australian organisation requested the Senate Select Committee on July 26 to develop a regulatory framework for crypto companies and offer a safe harbour until the enaction of the legislation.
Spain’s National Securities Market Commission issued a similar warning against 12 unregistered crypto firms operating in the country just one day ago. Moreover, crypto exchanges Bybit and Huobi were among those on the list, as they are not permitted to provide investment services in the nation.