Australia’s financial services and markets regulator has issued another glaring warning towards issuers of crypto-based financial products, particularly those inappropriately marketing high-risk products.
We’re seeing issuers promoting high-risk products as appropriate investments that will make up a significant portion of an individual consumer’s investment portfolio.
This will not be tolerated and action will be taken," he warned.
ASIC recently used these powers on Oct. 17, halting three cryptocurrency-related funds set to be offered to retail investors, due to non-compliant TMDs saying to Cointelegraph that they were “too broad [...] given the volatility and speculative nature of crypto markets.”
Longo took a seemingly softer approach towards blockchain and asset tokenization technology, noting it as having the potential to “provide new solutions to longstanding problems” and “revolutionize the way we do commerce.”
Harmful conduct that falls within our jurisdiction, including unlicensed conduct and misleading promotion of crypto-asset financial products, is within our sights.”
Source: Cointelegraph
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