Australia’s Financial Watchdog Expands Team to Better Regulate Crypto

The Australian Securities and Investments Commission (ASIC) has increased the size of its crypto team, The Guardian reportsafter the popular blockchain went from a proof of work (PoW) to one proof of stake (point of sale).

The change prompted the Chairman of the United States Security and Exchange Commission, Gary Gensler, to State that PoS-based tokens could be classified as securities.

Ethereum is under intense scrutiny following last week’s merger event, as ASIC looks set to decide whether the market’s second-largest cryptocurrency comes under its scrutiny.

If ASIC decides to bring PoS tokens like Ethereum, gimbaland Solana as part of its remit, crypto exchanges could be forced to remove them from the list or start complying with stricter regulatory requirements.

This would include applying for financial services licenses and showing that these platforms also hold significant cash in reserve.

Such a move could force some crypto firms to adjust their operating models, as even Attachedthe largest stablecoin on the market, was bogged down in controversy over its alleged failure to hold enough dollar reserves to back its stablecoin.

Although the regulator has yet to issue a final decision, its executive director for markets, Greg Yanco, said The Guardian that ASIC will not be a “cheerleader for crypto assets”.

Crypto in Australia

Research conducted by SEC Newgate for ASIC last November show that 44% of retail investors in Australia said they hold crypto, and only 20% of them considered crypto to be high risk.

In response, ASIC President Joe Longo said the regulator was “concerned that there are limited protections for investments in crypto-assets given that they have become increasingly mainstream and are heavily advertised and promoted. There are strong arguments for crypto-asset regulation to better protect investors.

Yanco further stated that crypto had not been a high priority for the regulator until last year.

But as the crypto downturn took hold and wiped out investor money around the world earlier this year, ASIC expanded its team, making crypto one of its “strategic core projects” .