Australian Minister of Finance Says Crypto is ‘not a fad,’ but an Asset Class

The Australian Minister of Finance Jane Hume during a conference cleared the air around the status of cryptocurrencies saying that they are definitely an asset class and no longer seen as a fad. Her comments came during the Financial Advisers Association Conference in Sydney.

“I would like to make something clear: cryptocurrency is not a fad. It is an asset class that will grow in importance”

Cryptocurrencies are currently not regulated in Australia, but Senator Hume made it clear that investors need to adhere to the existing laws and regulations in the country. She suggested that despite the digital asset market being self-regulated the government has no issues with the people investing their money in digital assets. She explained,

 “like investment in any asset class, they are subject to Australian law, including our market conduct, know-your-client, and tax laws. It is not a free pass.’

Senator Hume Sound Caution Against Market Volatility

Senator Hume sounded a caution during the same conference for cryptocurrency investors in the country amid a market blood bath wiping out over $500 billion yesterday. She cautioned investors to be wary of the volatile nature of these digital assets.

The cryptocurrency market yesterday had the first major crash in over a year where major crypto assets such as Bitcoin and Ethereum saw their value fall over 50% from their ATH. The crypto market saw the liquidation of over $8 billion in a matter of hours as the sell-off triggered a massive panic selling, especially among new investors.

The market mayhem was also aided by nearly all major exchanges malfunctioning at the same time including Coinbase, Binance, KuCoin, and even Coinmarketcap. Many analysts believe that traders were not able to buy the dip which only furthered the market correction and even highlighted the major shortcomings of crypto platforms that are aiming for wider adoption.