ASIC Paves the Way for Crypto Regulatory Reforms in Australia
Summary:
The Australian Securities and Investments Commission (ASIC) is prepping to launch a series of regulatory policies for the crypto industry, focusing on consumer protection, market integrity, and promoting financial innovation. ASIC Commissioner Alan Kirkland revealed this strategy during Blockchain APAC’s Policy Week event, and since 2016, the ASIC has offered regulatory advice to over 900 entities. The ASIC is also considering numerous proposals for tokenizing financial products and other tangible assets. In October 2023, Australia's Treasury proposed rules requiring crypto exchanges to obtain a financial services license from ASIC.
The Australian Securities and Investments Commission (ASIC) is gearing up to launch a set of regulatory transformations for the cryptocurrency field, with a focus on desired regulatory outcomes. ASIC Commissioner, Alan Kirkland, unveiled this strategy aimed at propelling the growth of prudent financial technology during Blockchain APAC’s Policy Week event held on March 20.
Emphasizing on the "regulatory trilemma" conundrum linked with fintech innovations, Kirkland underscored the importance of nurturing trust for crypto and decentralized finance systems by refining oversight and harmonizing elements of consumer protection, market integrity, and financial innovation. Since 2016, around 900 entities have received informal regulatory counsel from the ASIC.
Kirkland spoke about the impending regulatory reforms, stating that a transparent set of rules that uphold market integrity and minimize risks for consumers and investors is the ultimate aim. He further mentioned that these rules would be bolstered by systems encouraging compliance and allowing effective enforcement.
Kirkland also highlighted the ASIC's reception of multiple suggestions for tokenizing financial commodities and other tangible assets. The regulation of these forms of tokenization will be handled either by existing regulatory frameworks or through the government's digital asset platform proposal.
Kirkland is confident that the ASIC's strategy concerning innovation and efficient regulation can mitigate associated risks while popularizing digital assets.
In relation to this, in October 2023, the Australian Treasury unveiled a discussion paper offering compulsory crypto exchanges to secure a financial services license from the domestic financial regulator.
The projected regulations stipulate that any crypto exchange in possession of more than $3.2 million or beyond $946 per individual should secure a license from the ASIC. The consensus over the proposal among crypto exchanges operating within Australia varied. However, the Treasury elucidated that the primary purpose of the discussion paper is to solicit feedback on the manifold questions and regulations introduced within it.
Published At
3/21/2024 12:00:11 PM
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