Some investment platforms operating in Australia allow investors to buy and sell both stock market securities and cryptocurrencies on the same platform.
The country’s financial regulator has warned about its business model, according to a report by the Australian Financial Review. The Australian Securities and Investment Commission (ASIC) warns investors to think carefully before using the model where brokers can add risk from multiple asset classes.
Syfe and eToro Provide One-Stop Crypto Service
Headquartered in Singapore, wealth management platform Syfe allows investing in traditional securities and cryptocurrencies simultaneously. Entering the Australian market last year, Syfe has become one of the companies that has adopted a “one stop” business strategy. The project reports that it has added more than 2,000 stocks and exchange-traded funds to its platform.
Syfe Australia Managing Director Tim Wallace said: “We have developed a solution that aims to eliminate the noise, complexity and options that exist in the Australian market.”
However, eToro also began secretly testing a regional exchange product through its ASX company. The Australian Securities Exchange (ASX) is Australia’s primary stock exchange. As such, the multi-asset brokerage has enabled investors to trade both cryptocurrencies and traditional stocks through the same platform.
ASIC has stated that expanding crypto regulations are one of its main implementation priorities for 2023.
The regulatory commission recently emphasized that it will address abuses, issues that threaten market integrity, and consumer harm in industries including financial services, retail and crypto assets. Australian financial regulators announced in 2022 that they would implement stricter rules in the cryptocurrency industry. That’s why businesses in the country are required to register with the Australian Transaction Reports and Analysis Center (AUSTRAC).
These businesses are also required to comply with anti-money laundering and anti-terrorist financing regulations.
60262
