Australian regulator seeks feedback on managing 'risky' crypto assets

A representation of the virtual cryptocurrency Ethereum is seen among representations of other cryptocurrencies in this picture illustration taken June 14, 2021. REUTERS/Edgar Su/Illustration

(Reuters) - Australia's securities regulator said on Wednesday it would consult market participants on proposals to identify appropriate crypto assets and set up good market practices for financial instruments that expose them to digital currency-backed assets.

The move comes as governments and regulators worldwide try to regulate the digital assets industry in the wake of rising investor affinity for cryptocurrencies, which are volatile and risky for users and financial institutions.