Australian regulator seeks advice on crypto-related assets – bitcoin news

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The Australian Securities and Investments Commission (ASIC) recently opened a consultation to establish methods and best practices for regulating crypto assets. The consultation paper seeks to know which crypto-assets should be considered underlying assets and how to make that decision. The proposal could signal the emergence of new crypto-based products in the Australian market.

Australian regulator seeks advice

Australia’s securities regulator has released a public consultation document to decide how to regulate cryptocurrency-based products. The paper, titled “ASIC Consult on Crypto-Asset-Based ETPs and Other Investment Products,” seeks advice on several key topics that could affect the issuance of cryptocurrency-based derivatives, such as AND P.

For ASIC, cryptocurrencies are special assets whose impact needs to be regulated with more stringent standards. In the document, ASIC states that they are:

Aware of the interest 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 document recognizes several types of crypto assets, pointing out that not all cryptocurrencies are considered underlying assets. However, ASIC does offer a series of conditions that a crypto asset must meet to be an underlying asset: a high level of institutional support, the availability of service providers to support ETPs offering exposure to the crypto asset. , a mature spot market, a futures market and the availability of robust and transparent pricing mechanisms.

Australia could follow the example of Canada and Brazil

With this consultation, the Australian government is showing its openness to providing regulations adapted to the reality of the market. Many think this is a very different proposition from what governments like China are doing. China is orchestrating a total crackdown on cryptocurrency by crowding out trade and mining operations from its territory.

However, Australia appears to be more neutral when it comes to crypto. Financial Services Minister Jane Hume said in May Australians were free to invest in these assets while complying with applicable regulations. She said:

We have no problem with consumers investing in cryptocurrencies. But like investments in any asset class, they are subject to Australian law, including our conduct in the market, knowing your client, and tax laws. It is not a free pass.

In conclusion, the goal is for investors to finally have an ETF based on the cryptocurrency available in the country. As a result, the task of retail and institutional investors wishing to gain exposure to cryptocurrencies would be simplified. Australia could follow countries like Brazil and Canada, which already have crypto ETF products in releasing crypto-friendly regulatory frameworks.

What do you think of the latest consultation document released by ASIC? Tell us in the comments section below.

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