“Enforceable protections in the unregulated cryptocurrency market are somewhere between negligible and non-existent,” the group writes, citing price volatility and scams as the reasons why a regulatory framework is needed.
Australian consumer advocacy group CHOICE has called on the federal government to provide better protection for crypto investors while submitting a proposed regulatory framework for cryptocurrency exchanges operating in the country.for “crypto asset secondary service providers” defined as firms providing custodial crypto wallets and exchange services. CHOICE commented:
Outlining four main areas in its framework, the group called for a single definition of crypto for better regulation, a license for exchanges in line with current financial licensing, and for them to be bound by consumer protection laws to prohibit things like misleading advertising. The Australian Securities and Investments Commission , the chief financial services regulator in the country has previously warned that cryptocurrency is not recognized as a financial product. Commenting on the current regulations CHOICE’s senior policy adviser Patrick Veyret said: