Blockchain News Coin News

Australian Regulator Seeks Advice on Crypto-Related Assets

The Australian Securities and Investments Commission (ASIC) recently opened a consultation for establishing methods and best practices for regulating crypto assets. The consultation paper seeks guidance on which crypto-assets should qualify as underlying assets, and how to make this determination. The proposal could signal the emergence of new crypto-based products in the Australian market.

Australian Regulator Seeks Advice

The Australian Securities regulator issued a public consultation paper to decide how to regulate cryptocurrency-based products. The paper, titled “ASIC consults on crypto-asset-based ETPs and other investment products,” seeks advice on several key subjects that could affect the issuance of cryptocurrency-based derivatives, such as ETPs.

To ASIC, cryptocurrencies are special assets whose impact needs to be regulated with tighter standards. In the paper, ASIC states they are:

Aware of interest in, and demand for, domestic cryptoasset ETPs. However, we are also aware of the real risk of harm to consumers and markets if these products are not developed and operated properly.

The paper recognizes several kinds of crypto assets, stressing not all cryptocurrencies qualify as underlying assets. However, the ASIC proposes a series of conditions a crypto asset must fulfill to be an underlying asset: a high level of institutional support, the availability of service providers to support ETPs providing exposure to the crypto-asset, a mature spot market, a regulated futures market, and the availability of robust and transparent pricing mechanisms.

Australia Could Follow Canada and Brazil’s Lead

With this consultation, the Australian government signals its openness to provide regulations adjusted to the reality of the market. Many think this is a very different proposition, compared to what governments like China are doing. China is orchestrating a total cryptocurrency crackdown by ousting exchanges and mining operations from its territory.

However, Australia seems more neutral when it comes to crypto. Financial Services Minister Jane Hume declared in May that Australians were free to invest in these assets while complying with existing regulations. She stated:

We take no issue with consumers investing in cryptocurrencies. But like investment in any asset class, they are subject to Australian law, including our market conduct, know-your-client, and tax laws. It is not a free pass.

In conclusion, the goal is for investors to finally have a cryptocurrency-based ETF available in the country. As a result, the task of retail and institutional investors wanting to get exposure to cryptocurrencies would be simplified. Australia could follow countries like Brazil and Canada, that already have crypto ETF products by way of issuing crypto-friendly regulatory frameworks.

What do you think about the latest consultation paper issued by the ASIC? Tell us in the comments section below.

Bitcoin News
News, Australia, consultation, Cryptocurrency, ETF, ETP, Guidance, securities regulator

1% Deposit Bonus & Withdrawal Fees On Crypto Deposit in BuyUcoin

BuyUcoin giving 1% deposit bonus on crypto and reimbursement of crypto withdrawal fees for Indian user who have funds on banned crypto exchange. In the wake of the recent ban ...
Read More

A Decade in the Making: US SEC Approves 11 Bitcoin ETFs, Igniting Market Enthusiasm

After years of anticipation and regulatory scrutiny, the U.S. Securities and Exchange Commission (SEC) has granted approval to 11 Bitcoin ETFs applications, marking a significant milestone in the cryptocurrency and ...
Read More

Will Bitcoin Price Increase 200% When Bitcoin ETF Is Approved?

Everyone wants to know that bitcoin will Bitcoin Price Increase 200% When Bitcoin ETF Is Approved? We talk about the Bitcoin ETF, an important part in the cryptocurrency space. According ...
Read More

10 Must-Have Features on Bitcoin Staking Site

Crypto has provided many benefits for online gambling, and almost all relevant gambling sites now offer it as a payment method.  With so many gambling sites, players, especially those without ...
Read More

Christmas in the cryptocurrency world arrives early as the pre-holiday crypto market heats up

Happy Cryptomas to all of you! During the bullish state of the crypto market, margin-lending platforms and decentralised exchanges were the most often used DeFi protocols. Bitcoin is Up 167% so ...
Read More
Share with Others