The Australian Financial Services Minister – Jane Hume – warned cryptocurrency investors to beware of the risks in the market. She sounded a note of caution to the public after the prices of most digital assets collapsed significantly yesterday. However, Hume outlined their future importance.
Following the recent bloodbath, many of the cryptocurrencies are now far away from their highs. For example, Bitcoin itself lost a major chunk of its value during the past week, which caused a huge panic in the community.
Jane Hume used the opportunity to advise Australians about the risks related to crypto trading. In a recent Daily Mail interview, she stated that the digital assets are not only risky but also unstable:
”They are volatile and high-risk assets and investors must be aware of these risks.”
On the other hand, the Australian minister said that the government has no objection to people investing in crypto assets. She hinted, though, that transactions of this kind were subject to Australian law and noted that the country’s officials were alert about tax evasion possibilities:
”We take no issue with consumers investing in cryptocurrencies. But like investment in any asset class, they are subject to Australian law, including our market conduct, know-your-client, and tax laws. It is not a free pass.”
At the end of the interview, she highlighted the future potential of digital assets and their significant role in the economy:
”Cryptocurrency is not a fad. It is an asset class that will grow in importance.”
The residents of the smallest continent seem to be attracted by digital assets as they showed remarkable knowledge on the topic. According to a survey conducted by the Australian crypto exchange Independent Reserve, which took place at the end of 2020, over 90% of locals have heard of at least one cryptocurrency.
Bitcoin’s popularity was equal among men and women. However, male Australians were ”3x more likely to have heard of other cryptocurrencies such as Ethereum and Litecoin.”
Furthermore, nearly 20% of Aussies have reported owning at least one digital asset. According to the research, Bitcoin wins the first spot as the most adopted cryptocurrency.