Australian consumer advocacy group CHOICE reportedly urged the federal authority to enhance crypto security, while putting forward a regulatory framework proposal for local crypto exchanges. 

Specifically, the submission of the regulatory framework was finalized as a response attempt towards the federal Treasury’s consultation paper focusing on crypto asset secondary service providers (CASSPs) – classified as establishments offering custodial crypto wallets and exchange services.

“As it stands, enforceable protections in the unregulated cryptocurrency market are somewhere between negligible and non-existent.” CHOICE reportedly remarked. 

The group – including four primary aspects in its framework – reportedly urged for a unified definition of crypto to provide streamlined regulation, a license for exchanges in line with the existing financial licensing, and for them to be bound by consumer protection legislations to prevent misleading advertising.

lastly, CHOICE reportedly disclosed that it is mandatory for crypto exchanges to employ measures for stopping fraudulent payments from happening, as well as reimbursing clients when incidents like that do take place.

The Australian Securities and Investments Commission (ASIC), the chief financial services regulator in the country, has reportedly issued a warning in the past that cryptocurrency does not have the legal recognition as a financial product yet. 

“The crypto market is booming, but our laws are lagging behind, more and more Australians are purchasing crypto assets such as Bitcoin and Ethereum without adequate consumer protections.”  CHOICE’s senior policy adviser Patrick Veyret shared further remarks on the currently employed regulations.