Joe Longo, president of the Australian Securities and Investments Commission (ASIC) spoke at the Australian Financial Review Super and Wealth Summit, held on November 22 at the Fullerton Hotel in Sydney.
The rise of cryptocurrencies, he said, has been “nothing short of phenomenal, and impossible to ignore.”
As a regulator of companies and markets, Longo admitted a certain fascination with decentralized autonomous organizations, or DAOs. He said they present certain challenges for national regulators like the ASIC:
“Paraphrasing a concept familiar to corporate attorneys, who does the ASIC turn to to determine the directive mind and will of a DAO? It is unclear who is responsible if things go wrong, or not as intended or anticipated. It is also unclear how a DAO itself can be held liable in a court of law. “
Longo acknowledged the high consumer demand for cryptocurrency products and services in Australia, noting that the ASIC has yet to make major policy decisions regarding the cryptocurrency space: “Wherever we land from a political perspective […] Cryptocurrencies are on our doorstep, here and now, and they are being driven by extraordinary demand from consumers and investors. “
While his comments included a warning to investors, the president considered that Commonwealth Bank’s recent entry into the cryptocurrency market by offering cryptocurrency trading functionality to its app users was an important step to recognize in the evolution of cryptocurrency markets:
“The fact [de que] Australia’s largest bank already proposing a means of exposure to cryptocurrencies for its retail clients is revealing. Yes, it is only a pilot project, but the general direction is clear. This debate is no longer on the fringes of the financial services industry. “
Australia’s interest in the blockchain space appears to have increased over the course of the past few months. On Friday, November 19, the CEO of the country’s Commonwealth Bank said he is more concerned about missing the rise of this nascent technology than the alleged risks associated with its adoption. On November 2, the Australian Senate spoke highly of the sector, praising the country’s crypto advocates for their willingness to accept the regulation.
Keep reading: