Last Thursday, Duxton Hill Special Counsel Dr Aaron Lane was interviewed on ABC Radio National’s PM program regarding regulatory action against cryptocurrency exchanges. Dr Lane is internationally recognised for his expertise in blockchain technology and cryptocurrencies.
The interview was conducted following ASIC’s recent raid of the Australian offices of Binance, the world’s largest cryptocurrency exchange. Binance is also under scrutiny from the SEC in the United States. ASIC executed their searches following an investigation into Binance’s defunct local derivatives business within Australia.
Dr Lane detailed the uncertainties in the US over the classification of cryptocurrencies, and how the SEC appears to rely on regulation through enforcement. This approach follows FTX’s collapse in November 2022. Previously one of the world’s largest cryptocurrency exchanges, and Binance’s rival, the impact from FTX’s collapse is still being felt, with $8 billion of customer funds missing. Dr Lane emphasised the genuine concern of regulators over the potential of lost customer funds if exchanges such as Binance go bust.
Dr Lane outlined that the current approach taken by the Australian government is leaving the industry in regulatory uncertainty. Millions of Australians own some form of cryptocurrency despite the risks, market volatility and clear lack of legislative reform. Dr Lane expressed his concern that there is no way to tell when the Australian government will implement any law into cryptocurrency regulation, and consequently, cryptocurrency markets are shrouded in uncertainty.
Listen to the full interview here.
If you believe that you may be the victim of a cryptocurrency scam, contact Duxton Hill on 03 8676 7929 or firstname.lastname@example.org to speak with Australia’s only specialist law firm dedicated to cases involving fraud, misconduct, and financial crime.