Cryptocurrency: Australian Regulator Provides Guidance for Crypto-Asset Products


Australia’s corporate watchdog said on Friday that holders of underlying crypto-asset investment products will need a license, as part of a new set of guidance it hopes will improve transparency and protect investors.

Many of Australia’s top financial institutions are not associated with high risk cryptocurrency sector despite huge growth in the last one year.

a senate report Called On Australia for introducing new laws such as tax exemptions and licensing regimes for digital asset miners to be more competitive with other countries in the rapidly growing region.

Australia’s Securities and Investments Commission (ASIC) has introduced a new “crypto-asset” clause in its licensing applications, which would require holders of the underlying assets that comprise the crypto-asset.

“Crypto-assets have unique characteristics and risks that must be considered by product issuers and market operators to meet their existing regulatory obligations,” said ASIC Commissioner Cathy Armour.

Estimates of the size of the digital asset industry in Australia vary. A researcher finder.com.au says that in 2021 one-sixth of Australia had 8 billion (45,200 crore) worth of cryptocurrencies, with bitcoin being the most popular.

ASIC also provided guidance on best practices for monitoring, holding and pricing crypto-assets, as well as disclosure and risk management.

© Thomson Reuters 2021


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