DeFi should be considered a portfolio-building tool, a panel of experts told a packed room of advisors at this year’s Advisor Innovation Summit in Melbourne.
Lisa Wade, CEO of DigitalX and a board member of Blockchain Australia, said:
Cryptocurrencies and decentralized financial regulations are currently being considered by many regulatory agencies.
In collaboration with ASIC, the Treasury released a consultation paper in March on the proposed regulatory framework for secondary service providers of crypto assets.
This framework has proposed a tailored licensing framework for secondary service providers of crypto assets. This is next to the existing Australian Financial Services (AFS) and Cryptocurrency Financial Instruments market licensing schemes.
In essence, this would propose an obligation to companies that provide access to crypto assets and storage services.
Submissions to the talks ended last week and a review was conducted by the previous administration, but so far no policy position has been expressed, but workers are expected to move in the same direction.
Commenting on the regulatory path, Mr Wade said the regulation was “absolutely” welcomed.
“Especially in the financial markets, no one likes to see someone lose money, especially not moms and dads.
“We welcome regulation … From the Labor government’s point of view, I think they focus on consumer protection. This is a big scale, and from my point of view, it’s very exciting that they are. I think it will be the focus. There are also environmental implications, “Wade said.
How advisors can start connecting with DeFi, Holon’s senior analyst Charlie Nave, recommended “testing yourself” by experimenting with a small amount of money.
“The first thing I do is get a small amount of money, buy something like Bitcoin or Ethereum and test how it works, and then the client and its. You can have a conversation. I’m not talking a lot of money, it’s enough money for you to be an educational process, “Nave said.
“It can enhance the behavior of our advisors,” Nave added, but cautioned.
“There is a lot of volatility in the market, so do your homework to find out what a reliable network is and where it is robust.”
Paul Derham, managing partner of Holley Nethercote, advisor to the Adviser Innovation Summit, said clients regularly ask how they can invest in these products.
“Try it, but be careful. Watch YouTube videos and join industry forums. Don’t get confused,” he said.
For more information on DeFi, attend the Adviser Innovation Summit in Sydney on June 8th.
Click here for more information.
..
