<ul><li>Crypto is emerging as a new risk for personal insolvencies as cash-strapped Aussies turn to the volatile asset class out of desperation.</li><li>Tim Beresford, CEO of the Australian Financial Security Authority (AFSA), likens crypto to tulip mania, suggesting it is a speculative bubble with no potential utility.</li><li>While insolvencies are down compared to pre-COVID levels, Beresford highlights that crypto is an emerging financial risk factor, as desperate individuals invest in high-risk cryptocurrencies without understanding the risks.</li><li>The decrease in insolvencies is attributed to a structural shift in the unemployment rate and new rules around debt repayment, but the problem of bad financial advice remains.</li></ul>

Crypto Poses Insolvency Risk as Desperate Aussies Take On Risky Investments And Loans

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