WHERE ASIC WARNS, CONSUMERS SHOULDN’T BURN.
Is the Digital Assets “Grey Zone” Finally Closing? The quickly growing digital assets industry has serious regulatory gaps, which caused the Australian Securities and Investments Commission (ASIC) to issue a severe warning.
According to ASIC’s Key Issues Outlook, consumers are being exposed to unlicensed financial advice, deceptive behaviour, and inadequate protections by cryptocurrency, payments, and AI companies operating at the edge of regulation.
ASIC Chair Joe Longo said the regulator is closely watching major changes across Australia’s financial system as pressure on markets and consumers continues to rise.
He highlighted that disparate national regulations are causing uncertainty, making it more difficult for companies to follow through by the law, and reducing consumer protection.
Action is long needed, according to experts. Clear licensing regulations are the quickest approach to reduce confusion while still promoting responsible and safe innovation, according to Darcy Allen of RMIT University.
James Volpe, a Web3 instructor, emphasised that since digital assets are far from straightforward, improved business and consumer education is still important.
The caution is issued as the Australian government moves forward with much-needed digital asset legislation. The goal of the proposed Corporations Amendment (Digital Assets Framework) Bill 2025 is to establish the first transparent licensing system for digital asset platforms in the nation.
Can trust exist without clear rules? While some businesses operate lawfully outside of current regulations, ASIC pointed out that others purposefully skirt regulation, increasing danger and confusion. Stronger control and well-defined license boundaries are now the top priority, the regulator highlighted.
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