Australian Regulator Compares Bitcoin to Prison Currency in New Consultation Paper
Australia’s crypto industry is facing controversy after the Australian Securities and Investments Commission (ASIC) likened Bitcoin to cigarettes used as currency in prisons during a consultation on digital asset regulations.
Rhys Bollen, ASIC’s Digital Assets Lead, compared Bitcoin and stablecoins to non-cash payment methods, raising concerns that such broad regulations could stifle innovation. Critics worry that this interpretation could lead to unnecessary licensing requirements for crypto tools like MetaMask, potentially driving businesses overseas.
ASIC’s consultation, which includes examples of digital assets as financial products, has sparked fears of excessive regulation impacting the growing sector. Public feedback on the proposed rules is open until February 2025.
Clever Robot News Desk 13th December 2024
