Crypto adds new risk to Australia’s insolvency landscape
Australia's personal insolvency agency is seeing more cases where crypto speculation has pushed borrowers into distress or already stressed borrowers to insolvency.
Cryptocurrencies have come onto the radar of Australia’s personal insolvencies agency as unsecured borrowers gravitate towards higher-risk markets.
The overall insolvency landscape remains benign — largely due to structurally lower unemployment — according to Tim Beresford, chief executive of the Australian Financial Security Authority (AFSA).
While the largest unsecured lenders in Australia remain the tax office and major banks, AFSA has seen a growing shift towards what Beresford described as “tier three or tier four” lenders.
"We're seeing a shift from what was typically banked by tier one lenders to those that have not the same social license to operate — that's probably the fairest way to put it," he told Capital Brief.
