Australian regulator seeks feedback on managing ‘risky’ crypto assets – Reuters

Australian regulator seeks feedback on managing ‘risky’ crypto assets – Reuters

A representation of the virtual cryptocurrency Ethereum is seen among representations of other cryptocurrencies in this picture illustration taken June 14, 2021. REUTERS/Edgar Su/Illustration

June 30 (Reuters) – Australia’s securities regulator said on Wednesday it would consult market participants on proposals to identify appropriate crypto assets and set up good market practices for financial instruments that expose them to digital currency-backed assets.

The move comes as governments and regulators worldwide try to regulate the digital assets industry in the wake of rising investor affinity for cryptocurrencies, which are volatile and risky for users and financial institutions.

Bitcoin , the most popular cryptocurrency, has seen its price swing wildly this year, trading over the $35,500 level on Wednesday after hitting an all-time high of just under $65,000 in mid-April. read more

The Australian Securities and Investments Commission (ASIC) sees a “real risk of harm to consumers and markets” if exchange-traded products (ETPs) and other instruments exposed to crypto-backed assets are not developed and regulated properly.

The regulator is proposing to establish good practices with regard to the pricing, ownership, risk management and disclosure of these instruments to protect retail investors and maintain fair market