The rise of NFTs
Charging
Public interest in NFTs, or non-fungible tokens, a unique original digital asset such as a work of art or a special release music album that is created with the technology that underpins cryptocurrencies, skyrocketed in 2021.
An NFT by artist Beeple sold for $ 70 million at an auction held by Christies auction house, while Twitter founder Jack Dorsey raised $ 2.9 million selling his first tweet as NFT.
Even the Australian financial review got into the action, raising 11,8888 Ether (worth $ 56,667 at the time) in a charity auction of an NFT from the cover of their Young Rich magazine.
New opportunities
Charging
El Salvador became the first country in the world to accept Bitcoin as legal tender, which means that it could be exchanged for goods and services.
El Salvador has a large money remittance industry and a growing number of locals and nationals abroad who use cryptocurrencies.
Back home the Commonwealth Bank became the first local bank to allow its customers to exchange cryptocurrencies through its app, which is used by millions of Australians.
The corporate regulator ASIC also gave the green light to a range of cryptocurrency-related ETFs, and a growing number of fund managers Y market watchers plans announced for chase related to cryptocurrencies investment products for your clients.
But there was a step back in the development of cryptocurrencies, with China banning the intensive extraction of energy from coins.
New crypto regime
In December, Treasurer Josh Frydenberg revealed a set of sweeping regulatory changes aimed at improving oversight of the cryptocurrency sector and including new tax treatments for digital assets.
Frydenberg also raised the idea that Australia could become a leader in the cryptocurrency sector through a central bank digital currency, and opened the door to a discussion on a new type of collectivist company structure known as a decentralized autonomous organization. .
Meanwhile, the Australian banking sector i have a warning from transaction regulator Austrac and a Senate committee for its widespread policy of unseating clients, stopping to deal with clients, who ran cryptocurrency trading businesses.
Regulatory Warnings
Amid all the positive buzz, there were wise warnings from regulators about the dangers of this largely unregulated market.
The ACCC said earlier this year that nearly half of all complaints to the ScamWatch Consumer Hotline concerned digital assets.
And the new president of the corporate watchdog, Joe Longo, said a business summit: "In my opinion, consumers should approach crypto investment with great caution."
Risks arise
Charging
A key example of the risks of the unregulated cryptocurrency market was highlighted by the collapse from Australia-based exchange MyCryptoWallet in December.
In April, Age Y The Sydney Morning Herald revealed the website for the exchange It had been in the dark for over a year, leaving users without access to Bitcoin and other digital assets worth thousands of dollars.
Meanwhile, young Australians influencing cryptocurrencies used social media to build fortunes and win legions of fans with crazy commercial antics, Y this header revealed The world's largest cryptocurrency casino was operated out of Melbourne.
