Longo bluntly restates crypto concerns

The chair of the Australian Securities and Investments Commission (ASIC), Joe Longo, has refused to take a backward step on his views of crypto investments and how they should be regulated.

Longo made clear to Senate Estimates that it was his job to administer the law as it currently stands, and that includes warning consumers about highly risky investments.

Answering questions from NSW Liberal Senator, Andrew Bragg, Longo made clear he would continue his approach.

“My job is to administer the law as it is,” he said. “Part of that is about warning consumers about trading and indulging in activity that is highly risky, speculative and about which there is ample evidence that losses can occur for no good reason.”

“Under the existing law crypto currency is regulated, Longo said adding that the law had been unchanged for years.

“Our approach to crypto is no different to any other product or service we regulate,” the ASIC chair said.

“My broad position is that I have warned consumes about it. It is clearly highly risky. But I am technology neutral,” he said noting that recent work undertaken by ASIC was actually responding to what people wanted with respect to more certainty.

“I think it is highly speculative activity. I don’t think I can be any clearer in saying it is highly speculative, risky and should not be undertaken lightly,” Longo said. “But that  doesn’t mean it is illegal.”

“In the crypto space there could be need for greater need for transparency. I have no intention of withdrawing my remarks. If there is financialisaton of this activity going on, we will regulate it.”

“We will administer the law as it is. That includes licensing and enforcement action and there have been actions in the court which have been largely successful.”

“I am pro technology and innovation but it is part of my job as head of the agency to call out activities that are causing harm. Crypto related activities have caused very significant losses to retail investors. Be careful.”