News

Australian consumer group calls for regulation of crypto

In a statement to the Australian Treasury, consumer group CHOICE described its crypto regulatory framework, urging the country’s new federal government to prioritize crypto in its financial sector reforms.
CHOICE calls for better protections in the cryptocurrency market 

While submitting a suggested regulatory framework for cryptocurrency exchanges operating in Australia, the Australian consumer advocacy group CHOICE has urged the federal government to provide more safety for crypto investors.

The regulatory framework was developed in response to the federal Treasury’s consultation paper for crypto-asset secondary service providers, or CASSPs, which are described as companies that provide custodial crypto wallets and exchange services. CHOICE stated:

“As it stands, enforceable protections in the unregulated cryptocurrency market are somewhere between negligible and non-existent.”

CHOICE spokesperson Patrick Veyret said:

“CHOICE is hearing from many Australians about financial loss and other harm caused by purchasing crypto assets that were not what they appeared to be. We’ve seen a number of recent collapses of exchanges where people have lost all of their savings with no ability to get their money back.”

The organization advocated for a clear definition of cryptocurrency for better regulation, a license for exchanges similar to current financial licensing, and for them to be regulated by consumer protection rules to restrict things like misleading advertising.

Finally, CHOICE stated that cryptocurrency exchanges must have mechanisms to avoid fraudulent payments and refund customers when they occur.

According to an ongoing survey conducted by CHOICE, only around one in ten Australians purchased crypto such as Bitcoin (BTC) or Ether (ETH) in the past year, and 71% who signaled an interest in the crypto market didn’t purchase due to concerns of price volatility and scams.

CHOICE statistics that 1,034 Australians conducted in March and April revealed that more than half of respondents did not know if trading cryptocurrency comes with consumer safeguards similar to those found in the stock market. Approximately the same number of participants (50%) thought such consumer protections for crypto trading should be implemented.

Since celebrity endorsements and hyped-up marketing have often enticed Australians into buying cryptocurrencies, CHOICE wants the prohibition of misleading and deceptive conduct and unfair contract terms.

But most importantly, CHOICE wants regulation with “no loopholes” that encompasses all crypto service providers. The regulatory regime should also cover all digital assets, including currencies and non-fungible tokens (NFTs).

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Recent Posts

PropiChain’s Token Presale Turns Heads as the First DeFi Platform to Merge NFTs with AI 

The hype around PropiChain’s token presale is due to its innovative integration of NFTs and…

18 mins ago

UK Pension Fund Cartwright Encourages 3% Allocation to Bitcoin Investment

UK pension fund Cartwright advised the country's first defined benefit pension fund to allocate 3%…

2 hours ago

Crypto PAC Fairshake Continues to Boost 2026 Election With Support from a16z

a16z and Coinbase have pledged substantial funds to crypto PAC Fairshake, aiming to support crypto-friendly…

3 hours ago

Bitcoin, Ethereum, And Solana Lead Crypto Market, But Not For Long With New AI Altcoin With 30,000% Potential, Expert Says

Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) dominate the crypto market, but experts warn that…

6 hours ago

Dogecoin Price Prediction: Will DOGE Ever Hit $0.7 Again? Why ETFSwap (ETFS) Is The Best Alternative For 100x Gains

Discover the future as the Dogecoin price aims for a $0.7 comeback and discover why…

9 hours ago

This website uses cookies.