ChainCatcher news, reported by Decrypt, Rhys Bollen, the head of digital assets at the Australian Securities and Investments Commission (ASIC), made controversial remarks during a liaison meeting on December 12, comparing Bitcoin to cigarettes used as currency in prisons. These remarks stem from ASIC's recent release of a regulatory consultation document on non-cash payment instruments (NCP), which could bring cryptocurrencies under regulatory oversight.

Industry insiders are concerned that applying financial regulation to tools like non-custodial wallets could stifle innovation and lead to a drain of businesses. Michaela Juric, general manager of the AUDD project, warned that such regulatory thinking could force tools like MetaMask to apply for an Australian Financial Services License (AFSL).