Australian Regulator Warns Against Investing Super Funds in ‘High Risk’ Crypto Assets – Regulated Bitcoin News

Australian regulators have warned residents seeking self-managed superannuation funds to be wary of investing in crypto assets that promise high returns in a short period of time. In the warning, the regulator reiterated that crypto assets are a high-risk and speculative investment.

scammer strategy

Australia’s financial services regulator, the Australian Securities and Investments Commission (ASIC), has warned residents who self-manage their superannuation funds to be wary of scammers who take advantage of the lure of quick and high returns offered by crypto assets to deceive unsuspecting victims.

Superannuation fund members looking to ‘shift their pensions’, regulator adds [retirement savings] Switching from a regulated fund to a self-managed superannuation fund (SMSF)” should seek advice from a licensed adviser before making the switch.

in public warn Published on 17 January 2022, ASIC also details some of the tactics used by scammers that Australians need to be wary of. The warning states:

Don’t rely on social media ads or online connections from people promoting “investment opportunities.” Be wary of people “calling”, texting or emailing you advising you to transfer your pension to an SMSF, or invest in crypto assets through your SMSF.

For Australians who decide to personally manage their superannuation funds, the regulator reminds them of their responsibilities and the tax consequences if they decide to invest in cryptocurrencies. The warning also highlights that only licensed financial advisers can better assist Australians seeking to set up an SMSF.

illegal transfer of funds

Meanwhile, the warning shows that ASIC has decided to close an unlicensed services business. An example of a shutdown is A One Multi-Services, which it accused of illegally transferring $2.4 million to buy crypto assets back in November.

“ASIC has obtained interim orders and injunctions against A One Multi and its directors Aryn Hala and Heidi Walters from the Queensland Federal Court to protect investors,” the warning explained.

Meanwhile, Australians who have been scammed are warned that they can use its hotline or the Internet.

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Terence Chimwala

Terence Zimwara is an award-winning journalist, author and author from Zimbabwe. He has written extensively about the economic woes of some African countries and how digital currencies can provide an escape route for Africans.