Speaking at the AFR Super and Wealth Summit, Mr Longo touched on crypto and the pace of change in the market, which has been accelerated by the pandemic and lockdowns, and urged users to be cautious.

“In my opinion, consumers should approach cryptocurrency investing with great caution. The maxim “don’t put all your eggs in one basket” comes to mind, he said.

But while acknowledging that cryptocurrency is “on our doorstep” and driven by “tremendous consumer and investor demand”, Mr Longo spoke of the accompanying “unique challenges”.

Noting that currently many crypto assets are probably not financial products, making it difficult for financial advisors to offer advice, Mr. Longo delved into the advisor's possible approach.

“So what can they do when customers are banging down the door wanting to funnel their savings into Ethereum or Dogecoin, a currency originally conceived as a joke?

"ASIC has already provided some guidance on exchange-traded funds linked to crypto assets - at least they are financial products and traded on a licensed exchange, so there will be some protection there - but for the most part, at least for now, investors are on their own " Mr. Longo said.

Referring then to the Commonwealth Bank's recent crypto announcement, Mr Longo said: "The fact that Australia's largest bank is now offering crypto exposure to its retail clients speaks volumes."

“Yes, this is only a pilot project, but the general direction is clear.

"This debate is no longer on the fringes of the financial services industry."

Just last month, ASIC issued a new information sheet on crypto assets and exchange-traded products, which will provide practical examples of how regulatory obligations can be met by market participants.

For now, ASIC has said it is only willing to accept crypto-related investment products when the underlying asset meets a set of criteria. This includes a high level of institutional support, reputable service providers, a regulated futures market and a stable and transparent pricing mechanism.

Currently, only bitcoin and Ethereum are likely to meet these requirements.

Maja Garatsa Djurdjevic

Maya's career in journalism spans more than a decade in finance, business and politics. Now an experienced editor and reporter in all elements of the financial services sector, before joining Momentum Media, Maya reported for several established news outlets in South East Europe, looking at key processes in post-conflict societies.