Australian Regulator Warns Of Crypto Scams

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The Australian Securities and Investments Commission (ASIC) has issued a warning on the trading of cryptocurrencies, according to a press release.

The organization said in the release that investing in futures, options, or other such ventures, might be risky if done through unlicensed entities. By contrast, dealing with a licensed entity gives one liability protections.

An entity has to be licensed with ASIC to provide financial services, but ASIC has gotten several reports of people trading crypto-based financial products on unlicensed platforms, according to the release. That has sometimes led to “significant losses” due to excessive leverages, platform outages and unfair liquidations.

So, ASIC said in the release it recommends checking whether the entity one is dealing with has an Australian financial services (AFSL) license or Australian market license (AML). Entities not licensed by ASIC can also register with an external dispute resolution…

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