The Financial Planning Association of Australia has said there’s a need to regulate cryptocurrency as well as add a “crypto rule book,” a report says.
Ben Marshan, FPA’s head of policy, strategy and innovation, has said the organization called for a “crypto rule book” that will go along with a framework for regulation.
He said there was a need to regulate the crypto exchanges instead of the crypto assets themselves in order to protect crypto consumers and investors.
The report notes that the idea of a “crypto rule book” came from the Australian Law Reform Council (ALRC) last May. And Marshan had expanded on the idea, saying it would make things easier in general, “because instead of having to work your way through thousands of pages of the Corporations Act, people can go to a specific section, and it’s much more efficient.”
The report says it is important to regulate the crypto industry because it will keep growing in various sectors and service areas.
Crypto regulation has been a sticking point for some time now, with PYMNTS writing that U.S. Sen. Elizabeth Warren has said the Securities and Exchange Commission needs to take action on the recent upheaval in that space.
Read more: Crypto Crash Puts Spotlight on SEC’s Gensler
Crypto platforms have gone bankrupt, leaving investors sometimes unable to withdraw their funds.
Warren said the SEC “has a responsibility to use its authorities to put guardrails in place and crack down on crypto actors that break the rules.”
She said she’d been “ringing the alarm bell” for crypto regulation for some time.
“[T]he need for stronger rules to protect consumers and financial stability,” Warren added. “Too many crypto firms have been able to scam customers and leave ordinary investors holding the bag while insiders make off with their money.”