Crypto not a fad and the government has no issue with crypto investments, says Australian Minister

Bitcoin (BTC) suffered a massive price correction this week after a series of negative developments such as Tesla’s discontinuation of BTC payments and China’s warning on cryptocurrencies. An Australian federal government minister likewise warned investors of the risks involved but also clarified that the government has no issue with crypto investments.

On Thursday, Financial Services Minister Jane Hume said that investors should be aware of the risks involved when investing in cryptos. “'They are volatile and high-risk assets and investors must be aware of these risks,” Senator Hume said at the Stockbrokers and Financial Advisers Association Conference in Sydney, according to DailyMail.co.uk.

However, the minister also clarified the Australian government’s position that it sees no problem with people investing in digital assets. “We take no issue with consumers investing in cryptocurrencies,” she added.

It appears that the government is more concerned with investors trying to use digital assets for evading taxes or other illegal activities. “But like investment in any asset class, they are subject to Australian law, including our market conduct, know-your-client, and tax laws,” she pointed out. “It is not a free pass.”

Senator Hume also relayed the government’s position that cryptocurrencies are here to stay. The government also believes that digital currencies could become increasingly important in the financial system in the future.

“Cryptocurrency is not a fad,” she added. “It is an asset class that will grow in importance,” she said.

Likewise anywhere else, the challenge is in the regulation of the nascent digital assets industry. Last month, senator Andrew Bragg, the chairman of a parliamentary inquiry into financial technology, even admitted that Australian lawmakers found it challenging to come up with the right regulatory framework for the industry.

“A driver of the problem is that blockchain is a new form of property right,” Senator Bragg said. “It is not, of itself, a security, a share, a bond, personal property, or a contract.”

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