{"id":506006,"date":"2022-11-03T09:05:24","date_gmt":"2022-11-03T06:05:24","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/asics-longo-pledges-action-against-certain-high-risk-crypto-products\/"},"modified":"2022-11-03T09:05:24","modified_gmt":"2022-11-03T06:05:24","slug":"asics-longo-pledges-action-against-certain-high-risk-crypto-products","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/asics-longo-pledges-action-against-certain-high-risk-crypto-products\/","title":{"rendered":"# ASIC&#8217;s Longo pledges action against certain \u2018high-risk\u2019 crypto products"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a272f586e876\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a272f586e876\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/asics-longo-pledges-action-against-certain-high-risk-crypto-products\/#%E2%80%9D_ASICs_Longo_pledges_action_against_certain_%E2%80%98high-risk_crypto_products_%E2%80%9C\" >&#8221; ASIC&#8217;s Longo pledges action against certain \u2018high-risk\u2019 crypto products  &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_ASICs_Longo_pledges_action_against_certain_%E2%80%98high-risk_crypto_products_%E2%80%9C\"><\/span>&#8221; ASIC&#8217;s Longo pledges action against certain \u2018high-risk\u2019 crypto products  &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvOTM0MzFjNDAtYTY3Yi00NjQxLThjNzUtNWQzODQxOGY4OTIzLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-4b69a2fe>Australia\u2019s financial services and markets regulator has issued another glaring warning towards issuers of crypto-based financial products, particularly those\u00a0in<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ropriately marketing high-risk products.<\/p>\n<p>Joe Longo, chair of the Australian Securities and Investment Commission (ASIC) in an opening speech at the ASIC annual forum on Nov. 3 local time <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/asic.gov.au\/about-asic\/news-centre\/speeches\/asic-annual-forum-2022-chair-s-keynote\/\">said<\/a> it will use current laws to police \u201crisky and complex products\u201d to protect consumers.<\/p>\n<p>He added, \u201ccrypto and the crypto ecosystem continue to pose challenges and opportunities for regulators and policymakers alike\u201d saying the risks with crypto investing are \u201coften opaque\u201d with the assets being \u201chighly volatile, inherently risky, and complex.\u201d<\/p>\n<p>While his warning encompassed non-crypto-focused firms too, Longo took particular aim at issuers of crypto-based financial products, putting them on notice if their offering doesn\u2019t pass ASICs muster:<\/p>\n<blockquote><p>\u201cToo often, issuers are seeking to market high-risk and niche investment products, including in some cases crypto-based products, to a very wide range of consumers.<\/p><\/blockquote>\n<p>\u00a0We\u2019re seeing issuers promoting high-risk products as appropriate investments that will make up a significant portion of an individual consumer\u2019s investment portfolio. This will not be tolerated and action will be taken,&#8221; he warned.<\/p>\n<p>Longo said ASIC is continuing to use <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/asic.gov.au\/regulatory-resources\/financial-services\/design-and-distribution-obligations-significant-dealing-notification-requirements\/\">rules<\/a> enacted in Oct. 2021 for financial products to have stricter target market determinations (TMDs) and disclosures of significant dealings outside of those TMDs to police \u201crisky, volatile, and complex products.\u201d<\/p>\n<p>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 \u201ctoo broad [&#8230;] given the volatility and speculative nature of crypto markets.\u201d<\/p>\n<p>Longo took a seemingly softer approach towards blockchain and asset tokenization <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a>, noting it as having the potential to \u201cprovide new solutions to longstanding problems\u201d and \u201crevolutionize the way we do commerce.\u201d<\/p>\n<p>He noted the regulators&#8217; work supporting the pilot of a local Central Bank Digital Currency (CBDC) saying ASIC is monitoring developments of the pilot and how it will respond and adapt, adding:<\/p>\n<blockquote><p>\u201cWhile encouraging digital innovation, ASIC will act to disrupt and deter conduct that harms people. Harmful conduct that falls within our jurisdiction, including unlicensed conduct and misleading promotion of crypto-asset financial products, is within our sights.\u201d<\/p><\/blockquote>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Saying \u2018not financial advice\u2019 won\u2019t keep you out of jail: Crypto lawyers<\/em><\/strong><\/p>\n<p>At a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/asic.gov.au\/about-asic\/news-centre\/news-items\/asic-annual-forum-2022-where-to-with-crypto\/\">panel<\/a> on cryptocurrency later in the day, Longo said crypto \u201cthe capacity for consumer and investor harm is really, really significant\u201d when trading digital assets and reiterated the difference between crypto and blockchain technology:<\/p>\n<blockquote><p>\u201cMy central message for consumers is that this is a risky, speculative, and poorly understood activity, which has to be distinguished from the innovation of the underlying technology.\u201d<\/p><\/blockquote>\n<p>Longo said that crypto brings together \u201ckey issues that ASIC is interested in: technology, innovation, and new challenges for regulation.\u201d<\/p>\n<p>He spoke on the three \u201ccornerstones\u201d of ASICs crypto regulation strategy which are supporting the development of a regulatory framework and greater legal clarity for crypto and gathering information from international peers to inform the government on an effective legal framework along with continuing to disrupt and deter scams involving crypto.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"consulting_newsletter\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/asic-s-longo-pledges-action-against-certain-high-risk-crypto-products\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; ASIC&#8217;s Longo pledges action against certain \u2018high-risk\u2019 crypto products &#8220; Australia\u2019s financial services and markets regulator has issued another glaring warning towards issuers of crypto-based financial products, particularly those\u00a0inappropriately marketing high-risk products. Joe Longo, chair of the Australian Securities and Investment Commission (ASIC) in an opening speech at the ASIC annual forum on Nov&#8230;.<\/p>\n","protected":false},"author":1,"featured_media":506007,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvOTM0MzFjNDAtYTY3Yi00NjQxLThjNzUtNWQzODQxOGY4OTIzLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75461,74863,75238,20358,73785,70934],"class_list":["post-506006","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-asic","tag-cryptocurrencies","tag-financial-services","tag-australia","tag-markets","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/506006","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=506006"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/506006\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/506007"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=506006"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=506006"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=506006"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}