Australia could lose ground to other countries if it delays adopting tokenisation, according to the country’s chief financial regulator.
Joe Longo, Chair of the Australian Securities and Investments Commission (ASIC), told the National Press Club on November 5 that the global shift toward tokenised financial assets is moving quickly.
He noted that other nations are already making progress and warned that Australia could miss important chances to compete.
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Longo pointed out that Australia has previously been a leader in financial technology. For example, the first tokenised bond was issued in Sydney in 2018, but that momentum has slowed.
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He explained that tokenisation, which uses blockchain systems to represent assets digitally, could change how markets operate. Longo warned that if Australia does not act soon, it may end up relying on decisions made elsewhere.
After meeting with Paul Atkins, a commissioner at the US Securities and Exchange Commission, Longo said he became more aware of the level of competition to attract investment.
In response, ASIC plans to improve its support for businesses trying to build new financial tools. The agency will relaunch its Innovation Hub, which helps fintech startups understand and comply with regulatory requirements.
On October 14, Larry Fink, CEO of BlackRock, shared that tokenized versions of traditional assets will shape financial markets over the coming decades. How? Read the full story.
