The Australian Securities and Investments Commission (ASIC) recently sparked heated discussions at a conference, where its head of digital assets compared Bitcoin to cigarettes in prison, a metaphor that has generated widespread debate. ASIC's recently released regulatory consultation document indicates that it may include cryptocurrencies under the regulation of non-cash payment tools.

Industry insiders have expressed concerns that if financial regulation extends to tools like non-custodial wallets, it could stifle innovation and lead to an outflow of businesses. Michaela Juric, General Manager of the AUDD project, warned that this regulatory approach could force tools like MetaMask to apply for an Australian financial services license. The balance between regulation and innovation has once again become a focal point of industry attention.