australian Regulator Warns Against Investing Retirement Funds in ‘High Risk’ crypto assets
australian regulator and crypto assets
australian regulator and crypto assets
An australian regulator has warned residents who want to self-manage their pension funds to be wary of investing in crypto-asset investments that promise high returns in a short period of time. The regulator reiterates its warning that crypto assets are a high-risk and speculative investment.
deception methods
The australian financial services regulator, australian Investments (ASIC) and the Securities and Exchange Commission have warned residents that self-management of their pension funds are wary of scammers who use the lure of fast and high returns offered by crypto assets to defraud unsuspecting victims.
The regulator added that pension fund members who wish to “transfer retirement savings [retirement savings] from a structured fund to a self-managed pension fund (SMSF)” should seek advice from a licensed advisor before making any switch.
In a public warning dated January 17, 2022, ASIC also outlines some of the methods scammers use that Australians need to know about. The warning states:
Don’t rely solely on social media ads or online communication from someone promoting an “investment opportunity”. Be wary of ‘spam’ people calling, texting or emailing you with a recommendation to convert your super to SMSF or invest in crypto assets via your SMSF.
For Australians who decide to manage private pension funds personally, the watchdog reminds them of their responsibilities as well as the tax consequences that arise if they decide to invest in cryptocurrency. The warning also states that only licensed financial advisors are in the best position to assist Australians seeking to set up an SMSF.
Illegal transfer of money
Meanwhile, the warning revealed that australian Investments (ASIC) and the Securities and Exchange Commission have taken the decision to shut down an unlicensed service firm. One example of the shutdown was A One Multi-Services, in November, after the latter was accused of illegally diverting $2.4 million to purchase crypto assets.
The warning reads: “ASIC has obtained injunctions and interim injunctions from the Federal Court of Queensland against A One Multi and its directors Arjen Halla and Heidi Walters to protect investors.”
Meanwhile, the warning also says Australians who have been defrauded can contact ASIC on its hotline or online to report.