Joe Longo, head of the Australian Securities and Investments Commission (ASIC), expressed worry that many Bitcoin (BTC) and altcoin purchasers do not comprehend the danger of investing in digital assets. Longo was surprised by the expanding number of crypto investors in Australia.
According to the most recent study produced by the Australian Securities and Investments Commission (ASIC) at the beginning of August 2022, which surveyed over 1,000 retail investors in Australia, 44% of them claimed to possess cryptocurrencies, placing them in second place after Australian shares.
As per the new study, Mr. Longo said on August 11 to the Australian Financial Review: ASIC is particularly worried about the lack of safeguards for investments in crypto-assets, considering that these assets are becoming more popular and are extensively promoted.
On August 11, 2022, he also told The Sydney Morning Herald: My fear is that consumers and investors do not fully comprehend the dangers of this activity and do not fully comprehend what they are investing in…>. It’s a very speculative and hazardous enterprise, and I’m worried that customers who choose to invest in it must understand that if they lose their money, there is nothing we can do to help them.
Australian investors get financial data from social media
41% of those questioned said that social media sites such as Facebook, Reddit, and TikTok, as well as YouTube “finfluencers,” are one of their primary sources of investment knowledge.
Since the study was performed a year ago, before the ASIC’s crackdown on financial influencers, the researchers’ findings do not accurately reflect the current state of affairs.
Other “frequently mentioned” sources of investing knowledge outside social media include Google searches (34%), investors’ networks such as family and friends (24%), and colleagues (10%).
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