ASIC Commissioner Cathie Armor
ASIC has begun the difficult task of establishing regulatory ground rules for product issuers and market operators with the launch of a crypto-asset-related investment product guide.
The guide covers good practices on how to "admit and monitor" crypto products and addresses admission and monitoring standards, custody of crypto assets, pricing methodologies, disclosure and risk management.
It contains a number of important considerations for market providers, including the stipulation that responsible entities that intend to hold underlying crypto assets must have a specific license to do so. To address this, ASIC has created a new category of 'crypto assets' in the license application for entities.
The report appears on the back of the Senate Select Committee on Australia as a Technology and Finance Center final report on the future of digital assets in Australia, released last week, which laid out a plan to reform the sector spearheaded by the establishment of a market licensing regime for digital currency exchanges.
It also follows the public consultation of ASIC (CP343) which considered crypto assets as underlying assets for exchange traded products and other investment products.
"Crypto assets have unique characteristics and risks that must be considered by product issuers and market operators to meet their existing regulatory obligations," commented ASIC Commissioner Cathie Armor. "The good practices we publish provide practical examples of how these obligations can be met, in a way that maintains the protection of investors and Australia's fair, orderly and transparent markets."
According to the report, 25 percent of Australians own or have previously owned crypto assets.
Provider Betashares is preparing to launch a "crypto innovators" ETF in Australia soon.
