Tech boss slams crypto platforms

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Mr Varlamos, who said he was “talking his own book” as it was the right thing to do, went on to dismiss crypto speculation as a collective delusion similar to the South Sea Bubble.

“But worse, in that it’s socially and environmentally destructive,” he warned. “I say socially destructive because of the way it’s promoted, holding out the lure and thrill of unearned riches to those desperate to succeed and get ahead, who can least afford to lose their hard earned.”

According to Mr Varlamos, regulators are also missing in action given the lack of risk warnings and product disclosures necessary to market and offer crypto platforms.

The fintech entrepreneur also rubbed rival platforms for promoting crypto trading as next-gen investing, rather than speculation on the price movements of digital tokens with zero intrinsic value.

Regulatory twilight zone

CommSec-owner CBA has announced plans to enter the unregulated crypto industry via a partnership with US crypto exchange Gemini to allow customers to trade 10 different digital coins inside its banking app this year.

Budget broker and mobile share trading app Stake has announced plans to launch a crypto trading platform this year. Share trading rival SelfWealth has also announced a deal to let retail traders buy crypto via a partnership with exchange BTC Markets.

And Sydney-based share trading start-up Superhero has also publicly revealed ambitions to offer crypto trading functionality.

In Australia and globally, crypto tokens like bitcoin exist as unregistered securities, with critics claiming this has opened a window to financial and regulatory arbitration, which venture capital partnerships and crypto platforms use to enable synthetic asset bubbles.

Crypto industry leaders and government supporters in Australia say the digital asset industry will soon come under more regulation to lift investor protections, establish a market licensing regime, clarify anti-money laundering regulations, amend tax rules, audit requirements and responsible person tests.

In October, Australian senator and crypto crusader Andrew Bragg delivered a Select Committee on Australia as a Technology and Financial Center report on the sector to acclaim from stakeholders for its supportive approach to introducing regulation to the industry.

The report included recommendations to change the Corporations Act to recognize decentralized autonomous organizations (DAOs) as software-enabled companies existing on a blockchain. In December, the government said it intends to adopt most of the Bragg committee’s recommendations.

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