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ASIC identifies regulatory gaps in digital assets and crypto services as a 2026 risk. Unlicensed advice and unclear oversight raise concerns for consumer protection. AI-driven scams and cyber threats add pressure to financial regulators. Australia’s corporate regulator has identified gaps in cryptocurrency oversight as a key risk for 2026. The Australian Securities and Investments Commission outlined the concern in its latest financial system risk assessment. The review covers emerging threats linked to digital assets, artificial intelligence, and changes in market structure. Crypto Oversight Gaps Highlighted ASIC said regulatory gaps around digital assets, including cryptocurrencies, pose increasing risks to consumers and markets. The regulator noted that rapid innovation in crypto-related products and services has outpaced existing regulatory frameworks, leaving oversight unclear in some areas. According to ASIC, these gaps have increased the risk of unlicensed financial advice, misleading conduct, and consumer exposure to products that operate on the edge of regulation. The regulator said this is particularly concerning for individuals unfamiliar with financial services who may not fully understand the risks involved. ASIC added that while some crypto and fintech businesses currently operate outside regulation in a lawful manner, decisions on whether new product categories should fall under licensing regimes rest with the government.  At the same time, the regulator warned that certain firms actively seek to remain outside regulatory boundaries, contributing to uncertainty and uneven consumer protections. Related: Australia Moves to Modernize Crypto Rules With ASIC Stablecoin Relief Digital Assets Part of Broader System Pressures Crypto oversight concerns form part of a wider set of system-wide risks identified for 2026. ASIC said continued cost-of-living pressures, rising household debt, and ongoing geopolitical tensions are increasing volatility across Australia’s financial system. The regulator also pointed to the expansion of private markets, including private credit, where retail investors now face lower investment thresholds…

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Filed under: News - @ January 28, 2026 11:25 am