Despite being touted as a future form of private money to challenge fiat currency, crypto is not a financial asset. A purchaser of bitcoin or any other cryptocurrency is simply paying to gamble.
Treasury is considering submissions on appropriate regulation of CASSPRs (crypto asset secondary service providers), which are the main gateway for individuals and firms to interact with the cryptocurrency sector. This comes after the Morrison government accepted recommendations from a Senate committee inquiry that endorsed the overblown hype about the important future role of “crypto”.
One proposal is to designate cryptocurrencies and tokens as financial products, such that financial regulation can be applied to products, services and operators in the crypto ecospace.
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Kevin Davis is Professor of Finance at The University of Melbourne.
