Australian investors can now trade cryptocurrencies and ASX securities on the same platform. Brokers are racing to introduce exposure to multiple asset classes.
According to an article in the Australian Financial Review, the country’s financial regulator warned about the business plan.
The Australian Securities and Investments Commission (ASIC) tells investors to “think carefully” before following a model where brokers could add risks from multiple asset classes.
eToro, Syfe Provide ‘One-Stop’ Crypto Services
The Singapore-based asset management platform Syfe offers conventional stocks and cryptocurrency investments. After joining the Australian market last year, Syfe joined the ranks of businesses that used a “one-stop” business strategy. It allegedly expanded its platform to include more than 2,000 equities and exchange-traded funds.
“We’ve built a solution now that seeks to cut through the noise, complexity and choice that exists in the Australian market,” said Syfe Australia general manager Tim Wallace.
He talked about using the same network to launch Australian shares, American shares, and some particular cryptocurrencies. Wallace claims it is a breakthrough that cannot be “undersold.”
eToro is secretly testing a regional stock market product with several ASX firms. The primary stock market in Australia is called the Australian Stock Exchange, or ASX. On the same platform, investors can trade traditional stocks and cryptocurrencies at the multi-asset brokerage firm.
A spokesman for eToro said that diversification is an essential part of any financial strategy.
He continued, “As a multi-asset broker, eToro offers our users a diversified range of asset classes to invest in alongside a wide range of educational materials to support their financial education.”
ASIC Investment Priority and Next Regulations
According to the company, expanding crypto regulations is one of ASIC’s top enforcement priorities for 2023.
In a recent statement, the agency clarified that it would address wrongdoing, market integrity risks, and customer harms in the financial services, retail, and crypto-assets sectors. Australian financial regulators have said they will impose stricter regulations on the cryptocurrency industry starting in 2022. Australian Transaction Records and Analysis Centre registration is required for all companies operating within the country.
Additionally, these companies must abide by anti-money laundering (AML) and counter-terrorism financing (CTF) laws. Additionally, the government announced that a token-tracing operation would begin in August 2022. However, after this year, a thorough crypto regulatory structure will be implemented in Australia, according to Treasury documents quoted by media sources.
These documents show that the Treasury has a separate “crypto policy unit” for drafting new legislation.