Welcome to Ask Fear and Greed, where we take your questions and do our very best to answer them. I'm Michael Thompson and hello Sean Aylmer.

Welcome to Ask Fear and Greed, where we take your questions and do our very best to answer them. I'm Michael Thompson and hello Sean Aylmer.

Hello Michael.

Hello Michael.

Sean. Today's question it's an absolute ripperp So Tammy has written to us and she's gone to Fearangreed dot com, dot at you and centerce an email via the website. You can do it my social media as well if you want. But Tammy has gone to the website and she says, Hi, Fear and Greed, May I ask when or how did crypto form part of the value of the stock exchange. I loved it. The wariness already creeping into your boys. She then goes on to say, I'm curious as to how this asset has been able to become part of a highly regulated market without the regulations being in general terms applied to crypto under AML and banking codes, et cetera. Has the creation of ETFs exchange created funds meant the introduction of crypto to the regulated share market.

Sean. Today's question it's an absolute ripperp So Tammy has written to us and she's gone to Fearangreed dot com, dot at you and centerce an email via the website. You can do it my social media as well if you want. But Tammy has gone to the website and she says, Hi, Fear and Greed, May I ask when or how did crypto form part of the value of the stock exchange. I loved it. The wariness already creeping into your boys. She then goes on to say, I'm curious as to how this asset has been able to become part of a highly regulated market without the regulations being in general terms applied to crypto under AML and banking codes, et cetera. Has the creation of ETFs exchange created funds meant the introduction of crypto to the regulated share market.

Yes, essentially, because what regulators are doing is relying on the provider of ETFs to effectively put the rules around cryptos. So crypto regulation around the world is a mishmash somewhere between technicality is it is somewhere between detailed rules designed to support blockchain technology to outright bands and so depending where you are in the world, regulations are incredibly all over the place. I mean the US leads away. Different federal agencies treat digital assets differently based on what they think. The big one really is the Security as an Exchange Commission. It wants to classify digital assets as securities. That hasn't quite got there yet. What they did in January last year they approved bitcoin and theorem exchange traded funds. Then others followed. It kind of gave a form of legitimacy to cryptos, but it wasn't regulating in sense it was putting the responsibility for the regulation on the providers of the ets right, rather than actually regulating them themselves. Okay, now the UK regulated well, it regulates digital asset companies, but doesn't really make rules for cryptos. L Salvador was famous because the Central American nation stood out for being the only country to declare bitcoin as legal tender. So that's the other end of the spectrum. What about here, So we've begun the process of developing a regulatory framework for cryptos and blockchain technology. Terry was talking about AML, which is anti money laundering, so we kind of have so OSTRAK for example, it looks at anti money laundering, CANA, terrorism, and financing, and cryptos are captured by those rules. The Tax Office captures cryptos, ASCIC considers it a crypto a financial product, so by default some of the agencies do capture or impose regulations on cryptos. But she's right, there is no over arching rules for cryptos, so you can certainly buy ETFs that invest in cryptos on the AX And so I think her point is one hundred percent right. I mean, has a creation of ETFs and meant the introduction of crypto to the regulated share market. Yes, but the regulators have done a really poor job of getting their head around it, and they've basically put the onus of regulation on the companies providing the ETFs.

Yes, essentially, because what regulators are doing is relying on the provider of ETFs to effectively put the rules around cryptos. So crypto regulation around the world is a mishmash somewhere between technicality is it is somewhere between detailed rules designed to support blockchain technology to outright bands and so depending where you are in the world, regulations are incredibly all over the place. I mean the US leads away. Different federal agencies treat digital assets differently based on what they think. The big one really is the Security as an Exchange Commission. It wants to classify digital assets as securities. That hasn't quite got there yet. What they did in January last year they approved bitcoin and theorem exchange traded funds. Then others followed. It kind of gave a form of legitimacy to cryptos, but it wasn't regulating in sense it was putting the responsibility for the regulation on the providers of the ets right, rather than actually regulating them themselves. Okay, now the UK regulated well, it regulates digital asset companies, but doesn't really make rules for cryptos. L Salvador was famous because the Central American nation stood out for being the only country to declare bitcoin as legal tender. So that's the other end of the spectrum. What about here, So we've begun the process of developing a regulatory framework for cryptos and blockchain technology. Terry was talking about AML, which is anti money laundering, so we kind of have so OSTRAK for example, it looks at anti money laundering, CANA, terrorism, and financing, and cryptos are captured by those rules. The Tax Office captures cryptos, ASCIC considers it a crypto a financial product, so by default some of the agencies do capture or impose regulations on cryptos. But she's right, there is no over arching rules for cryptos, so you can certainly buy ETFs that invest in cryptos on the AX And so I think her point is one hundred percent right. I mean, has a creation of ETFs and meant the introduction of crypto to the regulated share market. Yes, but the regulators have done a really poor job of getting their head around it, and they've basically put the onus of regulation on the companies providing the ETFs.

That's a fascinating one, isn't it.

That's a fascinating one, isn't it.

Yeah, it is.

Yeah, it is.

I haven't got it right, Tommy. I hope you're satisfied with that answer.

I haven't got it right, Tommy. I hope you're satisfied with that answer.

She also went on to say, my sinister view is the black market has become part of the market, and you know, I mean her point. I mean that she says a bit more, which sort of turns that down. I've given the heart part, but it is a fair point. When you've got assets that are in the market that aren't really fully regulated, that is a black market kind of by definition, And we think of the black market as criminals, and we're not actually necessarily talking about criminals here. We're just talking about assets that are outside the regulated market. And so in a way it's sort of they have shifted into markets and the regulators have done a bad job of getting your head around it. Of course, with Donald Trump, the SEC will have to put some sort of parameters around it. I think regulations might be an over strong, like maybe too strong a word, some loose guidelines, guidelines or something like that. And he wants it to have a digital currency kind of was it the Fort Knox.

She also went on to say, my sinister view is the black market has become part of the market, and you know, I mean her point. I mean that she says a bit more, which sort of turns that down. I've given the heart part, but it is a fair point. When you've got assets that are in the market that aren't really fully regulated, that is a black market kind of by definition, And we think of the black market as criminals, and we're not actually necessarily talking about criminals here. We're just talking about assets that are outside the regulated market. And so in a way it's sort of they have shifted into markets and the regulators have done a bad job of getting your head around it. Of course, with Donald Trump, the SEC will have to put some sort of parameters around it. I think regulations might be an over strong, like maybe too strong a word, some loose guidelines, guidelines or something like that. And he wants it to have a digital currency kind of was it the Fort Knox.

Fort Knocks of digital currency, which is a great image.

Fort Knocks of digital currency, which is a great image.

It is a great image, so that gives them more legitimacy, but they're not very well regulated, but they're increasingly legitimate.

It is a great image, so that gives them more legitimacy, but they're not very well regulated, but they're increasingly legitimate.

Okay, all right, Tammy, I hope that's done. The trick I reckon so too be a good discussion. We can always do part two and I can watch the color drain from Sean's face all over again.

Okay, all right, Tammy, I hope that's done. The trick I reckon so too be a good discussion. We can always do part two and I can watch the color drain from Sean's face all over again.

Regulation is hard.

Regulation is hard.

Oh it's great, isn't it. Thank you very much, tame me for the question. Thank you Sean for having a crack out of it.

Oh it's great, isn't it. Thank you very much, tame me for the question. Thank you Sean for having a crack out of it.

Thank you, Michael.

Thank you, Michael.

Remember, if you've got something that you'd like to know, then send through your question at Fear and Greed dot com dot au or go to LinkedIn, Instagram, Facebook, anywhere. Really get it to us and we'll put it on the list. I'm Michael Thompson and this is ask Fear and Great

Remember, if you've got something that you'd like to know, then send through your question at Fear and Greed dot com dot au or go to LinkedIn, Instagram, Facebook, anywhere. Really get it to us and we'll put it on the list. I'm Michael Thompson and this is ask Fear and Great